Yufeng Yao (姚雨锋)
Yufeng Yao (姚雨锋)
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I am a PhD student and an Early Career Academic Fellow in Finance at the University of New South Wales (UNSW) in Sydney, Australia. My research interests include corporate governance, innovation, venture capital, and entrepreneurial finance.
Contact Information:
344D, Level 3,
UNSW Business School,
Sydney, NSW 2052, Australia
Working Papers
Working Papers
with Roham Rezaei
Presentations: SFS Cavalcade North America (2025), AFA (2025), Columbia Private Equity Research (2025), ABFER (2025), ACFOW (2024), FOM Dartmouth College (2024), EUROFIDAI-ESSEC Paris December Finance Meeting (2024), UNSW
Abstract: Basic science R&D can deter investors due to coordination and appropriability frictions. We study whether a coordinated public funding—supplying basic science as a public good—fosters VC investment. Our quasi-natural experiment is the BRAIN Initiative (BI), a big science program aimed at mapping the human brain. Using machine learning, we first find large spillover effects of BI in neurotech. Our difference-in-differences analysis shows that BI raised the probability of receiving VC, led to larger funding rounds at higher valuations, and resulted in more successful VC exits for neurotech startups. The BI's spillovers explain these results: (1) an expanded supply of skilled academic labor, (2) increased innovation activity and (3) deeper integration with complementary technologies like AI and big data. Our findings suggest that public science institutions supply an essential public good for private investment in innovation.
Bridging Research and Development: The Strategic Role of Scientists on the Board
Authors are ordered by contribution: Yufeng Yao, Ronald W. Masulis, Wing Wah Tham, and Elvira Sojli.
Best Paper Award at AsianFA Annual Conference 2024
Presentations: SFS Cavalcade Asia-Pacific (2024), FMA (2024), AsianFA (2024), AFBC (2023)
Abstract: Recent trends show US firms reducing their investments in scientific research while relying increasingly on scientific breakthroughs for patent development. This shift raises a critical question: How do firms access scientific ideas to fuel their innovations? Our study examines the role of top decision-makers in firms, specifically Scientific Directors (SciDs), defined as outside directors with scientific expertise, in bridging the gap between scientific research and patent development. These SciDs are increasingly prevalent, especially in firms whose patents depend heavily on basic scientific research. We find a positive relationship between the influence of SciDs' publications on a firm’s innovation activity and the quality of its patents. Utilizing deep learning techniques, we categorize patents based on the SciDs' areas of expertise, revealing that firms produce high-quality patents in fields where SciDs are actively conducting research. We also provide evidence that SciDs contribute to developing a firm’s innovation talent by tapping their professional networks to help connect top-tier inventors. To address endogeneity concerns, we explore the impacts of scientific breakthroughs due to the Human Genome Project. We observe an increase in both the numbers and economic benefits of SciDs at pharmaceutical firms, highlighting their pivotal role in transforming basic science into patented innovations.
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