Public Gains from Entrepreneurial Research: Inferences about the Economic Value of Public Support of the Small Business Innovation Research Program
AbstractThis paper presents a systematic analysis of the net economic benefits associated with the Small Business Innovation Research (SBIR) program. We offer a derivation of producer and consumer surplus to estimate economic benefits. Fundamental to the implementation of these models is a specific value of the elasticity of demand, but in its absence we estimate what its value would be when the benefit-to-cost ratio associated with public support of the SBIR program equals unity. We infer from these calculations, and from general knowledge about the ability of SBIR-funded firms to exploit their monopoly position, that the SBIR program likely generates positive net economic benefits to society.
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Bibliographic InfoPaper provided by University of North Carolina at Greensboro, Department of Economics in its series Working Papers with number 12-4.
Length: 24 pages
Date of creation: 27 Feb 2012
Date of revision:
Entrepreneurship; Innovation; Technology; SBIR Program; Benefit-to-cost Ratio; Program Evaluation; Producer Surplus; Consumer Surplus;
Other versions of this item:
- Stuart D. Allen & Stephen K. Layson & Albert N. Link, 2012. "Public gains from entrepreneurial research: Inferences about the economic value of public support of the Small Business Innovation Research program," Research Evaluation, Oxford University Press, vol. 21(2), pages 105-112, March.
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
- O22 - Economic Development, Technological Change, and Growth - - Development Planning and Policy - - - Project Analysis
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-08 (All new papers)
- NEP-CSE-2012-03-08 (Economics of Strategic Management)
- NEP-ENT-2012-03-08 (Entrepreneurship)
- NEP-INO-2012-03-08 (Innovation)
- NEP-PPM-2012-03-08 (Project, Program & Portfolio Management)
- NEP-SBM-2012-03-08 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- H. Spencer Banzhaf, 2009. "Objective or Multi-Objective? Two Historically Competing Visions for Benefit-Cost Analysis," Land Economics, University of Wisconsin Press, vol. 85(1), pages 3-23.
- Albert N. Link & John T. Scott, 2012.
"Employment Growth from Public Support of Innovation in Small Firms,"
Books from Upjohn Press,
W.E. Upjohn Institute for Employment Research, number eg, October.
- Albert N. Link & John T. Scott, 2012. "Employment growth from public support of innovation in small firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(7), pages 655-678, October.
- Link, Albert N. & Scott, John T., 2011. "Employment Growth from Public Support of Innovation in Small Firms," Working Papers 11-17, University of North Carolina at Greensboro, Department of Economics.
- Jean Tirole, 1988. "The Theory of Industrial Organization," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262200716, January.
- Link, Albert N. & Scott, John T., 2011. "Public Goods, Public Gains: Calculating the Social Benefits of Public R&D," OUP Catalogue, Oxford University Press, number 9780199729685.
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