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The economics of scientific research coalitions : collaborative network formation in the presence of multiple funding agencies

  • David,P.A.
  • Keely,L.C.

    (University of Wisconsin-Madison, Social Systems Research Institute)

The paper develops a formal model of coalition-building (“network” formation) among research units that seek competitive funding from a supra-regional program, while also drawing support from their respective regional funding agencies. This approach enables one to ask whether there are stable (equilibrium) outcomes in the interactions among the several funding entities, and to investigate what those outcomes would imply for the evolving distribution of scientific performance within the entire region and its national sub-regions. This analysis is motivated by the absence of frameworks of analysis applicable to problems of design of public R&D funding arrangements in the European Union, and in other regional systems were independent programs of “federal and state” support for research co-exists First, a model is developed to analyze how collaborations are formed under different sets of funding rules of an international funding institution, starting with a fixed finite population of research units and an associated distribution of reputed quality, or scientific reputation.. Collaborations are formed in the expectation of attracting supra-national funding, following a specific ordering procedure; this gives rise to a repeated non-cooperative game of coalition (or collaboration) formation with the distribution of payoffs within the collaboration following to a fixed rule. Non- cooperative games of coalition formation developed by Bloch (1995), and Ray and Vohra (1999), provides a useful framework single-period framework. Following Keely (1999), this type of game is applied to a multi-period setting in which a distribution of coalitions is tracked, along with the levels of funding received. The latter are determined according to a rule comparing the distribution of reputations within and across collaborations. Alternative possible external funding rules are analyzed to determine how they impact upon collaboration formation, and the resulting evolution of the reputation di

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Paper provided by Wisconsin Madison - Social Systems in its series Working papers with number 11.

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Date of creation: 2002
Date of revision:
Handle: RePEc:att:wimass:200211

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  1. Paul David, 2001. "From Keeping 'Nature's Secrets' to the Institutionalization of 'Open Science'," Oxford University Economic and Social History Series _023, Economics Group, Nuffield College, University of Oxford.
  2. Walter Garcia-fontes & Geuna Aldo, 1995. "The dynamics of research networks in Brite-Euram," Research Memorandum 014, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  3. Alfonso Gambardella & Walter Garcia-Fontes, 1996. "Regional Linkages Through European Research Funding," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 4(2), pages 123-138.
  4. Paula E. Stephan, 1996. "The Economics of Science," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1199-1235, September.
  5. Debraj Ray & Rajiv Vohra, 1998. "A Theory of Endogenous Coalition Structures," Working Papers 98-1, Brown University, Department of Economics, revised Jan 1998.
  6. Diana Hicks & J Sylvan Katz, 1996. "Science policy for a highly collaborative science system," Science and Public Policy, Oxford University Press, vol. 23(1), pages 39-44, February.
  7. David, Paul A, 1998. "Common Agency Contracting and the Emergence of "Open Science" Institutions," American Economic Review, American Economic Association, vol. 88(2), pages 15-21, May.
  8. Francis Bloch, 1995. "Endogenous Structures of Association in Oligopolies," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 537-556, Autumn.
  9. repec:adr:anecst:y:1998:i:49-50:p:06 is not listed on IDEAS
  10. Debraj Ray & Rajiv Vohra, 2001. "Coalitional Power and Public Goods," Journal of Political Economy, University of Chicago Press, vol. 109(6), pages 1355-1384, December.
  11. Katz, J. Sylvan & Martin, Ben R., 1997. "What is research collaboration?," Research Policy, Elsevier, vol. 26(1), pages 1-18, March.
  12. repec:adr:anecst:y:1998:i:49-50:p:07 is not listed on IDEAS
  13. David ,P. A. & Geuna ,Aldo & Steinmueller ,W. Edward, 1995. "Additionality as a principle of European R & D funding," Research Memorandum 009, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
  14. Ashish Arora & Alfonso Gambardella, 1996. "Reputation and competence in publicly funded scientific research," Industrial Organization 9605002, EconWPA.
  15. Paula E. Stephan & Sharon G. Levin, 1997. "The Critical Importance of Careers in Collaborative Scientific Research," Revue d'Économie Industrielle, Programme National Persée, vol. 79(1), pages 45-61.
  16. Sharp, Margaret, 1998. "Competitiveness and cohesion--are the two compatible?," Research Policy, Elsevier, vol. 27(6), pages 569-588, September.
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