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Cooperation or non-cooperation in R&D: how should research be funded?

Author

Listed:
  • Marie-Laure Cabon-Dhersin

    () (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

  • Romain Gibert

    (CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)

Abstract

This article compares two research funding policies in a cooperative or non-cooperative R&D setting: subsidising private research (Spr) and subsidising public research (Spu). We show that the Spr policy induces better performance than the Spu approach in terms of overall net surplus whether firms cooperate or not in R&D. Nevertheless, subsidising public research leads to greater R&D investment overall provided that the knowledge externalities from the public to the private research sector are not too high. The Spu policy is more effective in terms of research efforts when firms cooperate and subsidies are low.

Suggested Citation

  • Marie-Laure Cabon-Dhersin & Romain Gibert, 2017. "Cooperation or non-cooperation in R&D: how should research be funded? ," Working Papers hal-01587014, HAL.
  • Handle: RePEc:hal:wpaper:hal-01587014
    Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01587014
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    References listed on IDEAS

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    Keywords

    R&D spillovers; Knowledge public externalities; R&D Cooperation; Subsidies; Public policy;

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