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The Design of R&D Support Schemes for Industry

  • Russell Thomson

    ()

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Intellectual Property Research Institute of Australia, The University of Melbourne)

  • Elizabeth Webster

    ()

    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Intellectual Property Research Institute of Australia, The University of Melbourne)

Scant discussion exists in the literature about the relative design merits of various R&D schemes and most authors treat program design as a black box. In this paper, we assess the design features of three major forms of R&D support: entitlement schemes, competitive schemes and industry R&D boards. We use a combination of evidence to comment on how well these schemes perform in terms of: firm engagement (how does the scheme recruit business interest?); project selection (what criteria are used and who selects the projects?); payment structure (how is financial support structured?) and administrative costs (what is the burden?).

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Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2011n24.

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Length: 25 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:iae:iaewps:wp2011n24
Contact details of provider: Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia
Phone: +61 3 8344 2100
Fax: +61 3 8344 2111
Web page: http://www.melbourneinstitute.com/
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  1. Klaassen, Ger & Miketa, Asami & Larsen, Katarina & Sundqvist, Thomas, 2005. "The impact of R&D on innovation for wind energy in Denmark, Germany and the United Kingdom," Ecological Economics, Elsevier, vol. 54(2-3), pages 227-240, August.
  2. Richardson, Martin & Wilkie, Simon, 1995. "Incremental R&D Subsidies," Journal of Regulatory Economics, Springer, vol. 7(2), pages 161-75, March.
  3. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2009. "The Environment and Directed Technical Change," NBER Working Papers 15451, National Bureau of Economic Research, Inc.
  4. Elizabeth Webster & Paul H. Jensen, 2009. "Do Patents Matter for Commercialization?," Melbourne Institute Working Paper Series wp2009n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  5. Russell Thomson, 2009. "Tax Policy and R&D Investment by Australian Firms," Melbourne Institute Working Paper Series wp2009n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  6. Nagano, Mamoru, 2006. "R&D investment and the government's R&D policies of electronics industries in Korea and Taiwan," Journal of Asian Economics, Elsevier, vol. 17(4), pages 653-666, October.
  7. Aerts, Kris & Schmidt, Tobias, 2006. "Two for the price of one? On additionality effects of R&D subsidies: A comparison between Flanders and Germany," ZEW Discussion Papers 06-63, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  8. Baker, Erin & Adu-Bonnah, Kwame, 2008. "Investment in risky R&D programs in the face of climate uncertainty," Energy Economics, Elsevier, vol. 30(2), pages 465-486, March.
  9. Garrone, Paola & Grilli, Luca, 2010. "Is there a relationship between public expenditures in energy R&D and carbon emissions per GDP? An empirical investigation," Energy Policy, Elsevier, vol. 38(10), pages 5600-5613, October.
  10. Arrow, Kenneth J & Lind, Robert C, 1970. "Uncertainty and the Evaluation of Public Investment Decisions," American Economic Review, American Economic Association, vol. 60(3), pages 364-78, June.
  11. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," MERIT Working Papers 006, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  12. Moore, Michal C. & Arent, Douglas J. & Norland, Douglas, 2007. "R&D advancement, technology diffusion, and impact on evaluation of public R&D," Energy Policy, Elsevier, vol. 35(3), pages 1464-1473, March.
  13. Bayona-Sáez, Cristina & García-Marco, Teresa, 2010. "Assessing the effectiveness of the Eureka Program," Research Policy, Elsevier, vol. 39(10), pages 1375-1386, December.
  14. Irwin Feller, 1992. "American state governments as models for national science policy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(2), pages 288-309.
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