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Subsidizing Cooperative And Noncooperative R&D: An Equivalence Result?

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  • Jeroen Hinloopen

Abstract

We show for a widely-used class of models for strategic R&D that optimally subsidizing cooperative R&D or noncooperative R&D leads to the same level of private R&D investments. We then highlight the limitations of the framework that are responsible for this finding and conclude that policy recommendations based on the type of model used here should be treated as highly tentative.

Suggested Citation

  • Jeroen Hinloopen, 2000. "Subsidizing Cooperative And Noncooperative R&D: An Equivalence Result?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(4), pages 317-329.
    • Handle: RePEc:taf:ecinnt:v:9:y:2000:i:4:p:317-329
    DOI: 10.1080/10438590000000012
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    Citations

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    Cited by:

    1. Donja Darai & Jens Grosser & Nadja Trhal, 2009. "Patents versus Subsidies � A Laboratory Experiment," SOI - Working Papers 0905, Socioeconomic Institute - University of Zurich.
    2. Amir, Rabah, 2000. "Modelling imperfectly appropriable R&D via spillovers," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 1013-1032, October.
    3. Rabah Amir & Evangelia Chalioti & Christine Halmenschlager, 2021. "University–firm competition in basic research: Simultaneous versus sequential moves," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 23(6), pages 1199-1219, December.
    4. Dirk Czarnitzki & Bernd Ebersberger & Andreas Fier, 2007. "The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(7), pages 1347-1366.
    5. Jeroen Hinloopen, 2003. "Innovation performance across Europe," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(2), pages 145-161.

    More about this item

    Keywords

    R&D subsidies; cooperative R&D; differentiated oligopoly; JEL Classification L43; O32;
    All these keywords.

    JEL classification:

    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

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