A framework is developed with which both R&D-subsidies and R&D-cooperatives can be analyzed. It is shown that in most cases providing R&D-subsidies is more effective in promoting private R&D than allowing for an R&D-cooperative. Moreover, considering the implementation of both R&D stimulating policies simultaneously reveals that R&D-cooperatives are redundant. The preferred R&D stimulating policy is to optimally subsidize RJVs.
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Paper provided by University of Copenhagen. Department of Economics. Centre for Industrial Economics in its series CIE Discussion Papers with number
1997-15.
Length: 30 pages Date of creation: May 1997 Date of revision: Publication status: Published in: De Economist. September 2001; 149(3): 313-45 Handle: RePEc:kud:kuieci:1997-15
Find related papers by JEL classification: L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
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