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The Strategic Role Of Public R&D In Agriculture

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  • Onofri, Alejandro
  • Giannakas, Konstantinos
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    Abstract

    The role of public agricultural R&D is analyzed in a mixed oligopoly model framework with strategic interaction among innovating firms and the government. Selective subsidization of innovating firms (i.e., targeted subsidies) is also examined. Analytical results show that the existence of public applied research can enhance the arrival rate of innovations while mitigating the socially undesirable consequences of market power in applied R&D production. Under certain conditions, direct government involvement in applied R&D is equivalent to the provision of targeted subsidies to less efficient firms.

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    File URL: http://purl.umn.edu/20699
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    Bibliographic Info

    Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2001 Annual meeting, August 5-8, Chicago, IL with number 20699.

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    Date of creation: 2001
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    Handle: RePEc:ags:aaea01:20699

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    Keywords: Research and Development/Tech Change/Emerging Technologies;

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    1. Moschini, GianCarlo & Lapan, Harvey E., 1997. "Intellectual Property Rights and the Welfare Effects of Agricultural R & D," Staff General Research Papers 5048, Iowa State University, Department of Economics.
    2. Gruber, Harald, 1992. "Persistence of Leadership in Product Innovation," Journal of Industrial Economics, Wiley Blackwell, vol. 40(4), pages 359-75, December.
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    4. Ross, David R, 1986. "Learning to Dominate," Journal of Industrial Economics, Wiley Blackwell, vol. 34(4), pages 337-53, June.
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    6. Reinganum, Jennifer F., 1989. "The timing of innovation: Research, development, and diffusion," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 14, pages 849-908 Elsevier.
    7. Delbono, Flavio, 1989. "Market Leadership with a Sequence of History Dependent Patent Races," Journal of Industrial Economics, Wiley Blackwell, vol. 38(1), pages 95-101, September.
    8. Link, Albert N. & Scott, John T., 2001. "Public/private partnerships: stimulating competition in a dynamic market," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 763-794, April.
    9. Audretsch, David B. & van Leeuwen, George & Menkveld, Bert & Thurik, Roy, 2001. "Market dynamics in the Netherlands: Competition policy and the role of small firms," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 795-821, April.
    10. Fudenberg, Drew & Gilbert, Richard & Stiglitz, Joseph & Tirole, Jean, 1983. "Preemption, leapfrogging and competition in patent races," European Economic Review, Elsevier, vol. 22(1), pages 3-31, June.
    11. Gilbert, Richard J & Harris, Richard G, 1981. "Investment Decisions with Economies of Scale and Learning," American Economic Review, American Economic Association, vol. 71(2), pages 172-77, May.
    12. Aoki, Reiko, 1991. "R&D Competition for Product Innovation: An Endless Race," American Economic Review, American Economic Association, vol. 81(2), pages 252-56, May.
    13. Audretsch, David B. & Baumol, William J. & Burke, Andrew E., 2001. "Competition policy in dynamic markets," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 613-634, April.
    14. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
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