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Effects of Federal Support on Company-Financed R and D: The Case of Energy

  • Edwin Mansfield

    (Faculty of Arts and Sciences, University of Pennsylvania Philadelphia, Pennsylvania 19104)

  • Lorne Switzer

    (School of Business, University of Saskatchewan, Saskatoon, Saskatchewan, Canada)

For decades, policy makers in both the public and private sectors have been concerned with the question: What is the impact of changes in federal R and D support on company-financed R and D expenditures? This is one of the first empirical studies at a micro level of this topic. The results, which pertain to energy R and D, indicate a complementarity between government-financed and company-financed R and D, on the average, although there is a considerable amount of interfirm variation in this regard. In about one-third of the projects studied, federally-financed R and D projects suggested some further R and D into which the firm invested its own funds. The results of a logit analysis suggest that whether or not a government-financed R and D project results in such a spinoff depends on the extent to which the performing firm contributes to the formulation of the project's goals and strategies.

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Article provided by INFORMS in its journal Management Science.

Volume (Year): 30 (1984)
Issue (Month): 5 (May)
Pages: 562-571

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Handle: RePEc:inm:ormnsc:v:30:y:1984:i:5:p:562-571
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