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The impact of public funding for innovation on firms' R&D investments: Do R&D cooperation and appropriability matter?

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  • Manuela Gussoni - Andrea Mangani

Abstract

This paper provides a theoretical and empirical framework to explore how public funding affects firms' R&D investments depending on their engagement in horizontal R&D cooperations and different levels of ap- propriability conditions within the economy. It assumes firms' Cournot-Nash behavior in the choice of the optimal R&D investment level and provides empirical evidence in support of the theoretical ¯ndings using data on Spain and Germany from the Third Community Innovation Survey. Theoretical and empirical re- sults suggest that firms' cooperative behaviour and the appropriability conditions affect the relationship between public funding for innova- tion and R&D investments.

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Bibliographic Info

Paper provided by Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy in its series Discussion Papers with number 2009/90.

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Date of creation: 15 Oct 2009
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Handle: RePEc:pie:dsedps:2009/90

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Keywords: R&D cooperatives; subsidies; knowledge spillovers; innovation.;

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References

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Cited by:
  1. Luciano Fanti & Luca Gori, 2012. "Endogenous Lifetime in an Overlapping-Generations Small Open Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, Mohr Siebeck, Tübingen, vol. 68(2), pages 121-152, June.
  2. Luciano Fanti & Luca Gori, 2009. "Endogenous fertility, endogenous lifetime and economic growth: the role of health and child policies," Discussion Papers, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy 2009/91, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

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