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An Evaluation of Federal Policy Instruments to Stimulate Basic Research in Industry

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  • Prafulla Joglekar

    (La Salle College)

  • Morris Hamburg

    (University of Pennsylvania)

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    Abstract

    A model of the resource allocation behavior of a group of firms demonstrates that unaided industry allocation to basic (inappropriable) research is suboptimal. Furthermore, provision of seed money is generally counterproductive, while the provision of a matching subsidy is not very cost-efficient in increasing the allocation. Innovative policy alternatives are proposed.

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    File URL: http://dx.doi.org/10.1287/mnsc.29.9.997
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    Bibliographic Info

    Article provided by INFORMS in its journal Management Science.

    Volume (Year): 29 (1983)
    Issue (Month): 9 (September)
    Pages: 997-1015

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    Handle: RePEc:inm:ormnsc:v:29:y:1983:i:9:p:997-1015

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    Related research

    Keywords: research and development; government; engineering; economics;

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    Cited by:
    1. Joglekar, Prafulla & Hamburg, Morris, 1996. "Conditions for government support of private research and development," European Journal of Operational Research, Elsevier, vol. 94(3), pages 626-630, November.

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