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R&D Information sharing in a mixed duopoly and incentive subsidy for research joint venture competition

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  • Sang‐Ho Lee
  • Timur K. Muminov

Abstract

This study investigates the incentives for R&D (research and development) information sharing in a mixed duopoly and finds a contrasting result that public firm chooses full sharing while private firm enjoys free‐riding. We then devise an agreement‐based incentive R&D subsidy scheme for RJV (research joint venture) competition, which can internalize R&D spillovers between firms and induce them to earn higher payoffs through full sharing of their R&D information. We also discuss welfare loss of the proposed R&D subsidy scheme, compare with production subsidy and provide some policy‐relevant implications on privatization.

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  • Sang‐Ho Lee & Timur K. Muminov, 2021. "R&D Information sharing in a mixed duopoly and incentive subsidy for research joint venture competition," Bulletin of Economic Research, Wiley Blackwell, vol. 73(2), pages 154-170, April.
    • Handle: RePEc:bla:buecrs:v:73:y:2021:i:2:p:154-170
    DOI: 10.1111/boer.12239
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    Cited by:

    1. Lee, Sang-Ho & Muminov, Timur, 2020. "R&D Spillovers and Welfare Effect of Privatization with an R&D Subsidy," MPRA Paper 99937, University Library of Munich, Germany.
    2. Sang-Ho Lee & Timur K. Muminov, 2021. "Endogenous Timing of R&D Decisions and Privatization Policy with Research Spillovers," Journal of Industry, Competition and Trade, Springer, vol. 21(4), pages 505-525, December.
    3. Jiaqi Chen & Sang‐Ho Lee & Timur K. Muminov, 2022. "R&D spillovers, output subsidies, and privatization in a mixed duopoly: Flexible versus irreversible R&D investments," Bulletin of Economic Research, Wiley Blackwell, vol. 74(3), pages 879-899, July.
    4. Jiaqi Chen & Sang-Ho Lee & Timur K. Muminov, 2021. "Welfare-reducing discriminatory output subsidies with mixed ownership and R&D," Economics Bulletin, AccessEcon, vol. 41(3), pages 1592-1602.
    5. Jiaqi Chen & Sang‐Ho Lee, 2023. "Cournot–Bertrand comparisons under R&D competition: Output versus R&D subsidies," International Journal of Economic Theory, The International Society for Economic Theory, vol. 19(1), pages 77-100, March.
    6. Xing Gao & Xifan Wang & Weijun Zhong & Ying Wang, 2023. "R&D subsidy and output subsidy in a duopoly: The role of technology spillover and R&D budget," Australian Economic Papers, Wiley Blackwell, vol. 62(3), pages 524-538, September.
    7. Lina Ma & Xinran Zhang & Yushen Du, 2021. "Influence Mechanism on Supplier Emission Reduction Based on a Two-Level Supply Chain," IJERPH, MDPI, vol. 18(23), pages 1-16, November.

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    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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