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Knowledge exhaustibility public support to business R&D and the additionality constraint

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  • Cristiano Antonelli

    (Università di Torino & (BRICK) Collegio Carlo Alberto)

Abstract

Recent advances of the economics of knowledge about the properties of knowledge as an economic good with the identification of the limited exhaustibility of knowledge and its positive effects in terms of diachronic knowledge externalities, question the foundations of the Arrovian postulate upon which the provision of public support to R&D activities performed by firms is based. This paper calls attention on the need to shift from the provision of public support to R&D activities aimed at reducing R&D costs to compensate firms for the losses triggered by the limited appropriability of knowledge to a public support aimed at increasing the flow of R&D activities and hence the rates of accumulation of the stock of quasi-public knowledge. A strong additionality requirement such that recipients should increase the levels of R&D performed by an amount equal or larger than the public fund is consequently advocated as a standard procedure.

Suggested Citation

  • Cristiano Antonelli, 2020. "Knowledge exhaustibility public support to business R&D and the additionality constraint," The Journal of Technology Transfer, Springer, vol. 45(3), pages 649-663, June.
    • Handle: RePEc:kap:jtecht:v:45:y:2020:i:3:d:10.1007_s10961-019-09727-y
    DOI: 10.1007/s10961-019-09727-y
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    References listed on IDEAS

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    Cited by:

    1. Albert N. Link & Martijn van Hasselt, 2022. "The use of intellectual property protection mechanisms by publicly supported firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 31(1-2), pages 111-121, February.
    2. Li, Fengshu & Andries, Petra & Pellens, Maikel & Xu, Jianzhong, 2021. "The importance of large firms for generating economic value from subsidized technological innovation: A regional perspective," Technological Forecasting and Social Change, Elsevier, vol. 171(C).

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    More about this item

    Keywords

    Arrovian postulate; Knowledge exhaustibility; Appropriability trade-off; Public support to R&D; Strong additionality requirement;
    All these keywords.

    JEL classification:

    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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