I build a model of the choice and timing of entry into commercial activities by an academic research team, and analyze the returns and costs of these activities. I compare the behavior and performance of the academic team to an industrial research team. Before moving to commercialization, a team can decide to invest in cost-reducing research activities. Unlike the industrial team, the academic team also receives direct benefit from performing research, in the form of publication and peer recognition in the scienti community.

However, the type of research that is more effective in reducing development and commercialization costs may not be the one generating the highest scientific benefit for the academic team. I show that, while in some cases academic scientists are more reluctant to commercialize research, in other cases they may commercialize faster than profit-seeking firms would and perform less basic research. Academic and non-academic scientists also select different projects, and this may explain the good performance of academic entrepreneurs found in several empirical studies. In the light of these results, I offer a unified framework to interpret the mixed evidence on the success of, and the arguments in favor and against, the involvement of universities into commercial activities.