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.:
- Link, Albert N. & Scott, John T., 2011. "Public Goods, Public Gains: Calculating the Social Benefits of Public R&D," OUP Catalogue, Oxford University Press, Oxford University Press, number 9780199729685, 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.
- 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, W.E. Upjohn Institute for Employment Research, number eg.
- Link, Albert N. & Scott, John T., 2011. "Employment Growth from Public Support of Innovation in Small Firms," Working Papers, University of North Carolina at Greensboro, Department of Economics 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, The MIT Press, edition 1, volume 1, number 0262200716, December.
- H. Spencer Banzhaf, 2009. "Objective or Multi-Objective? Two Historically Competing Visions for Benefit-Cost Analysis," Land Economics, University of Wisconsin Press, University of Wisconsin Press, vol. 85(1), pages 3-23.
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