Social Rewards in Science and Economic Growth
In this paper we put forward a model of basic research and long-run economic growth in which the incentives of social reward to scientific work may produce increasing returns and multiple equilibria. The state organizes production of new knowledge - a public good that improves firms technology - with taxes on the private sector. Scientists compete with one another to attain priority over a discovery and be awarded both a real prize and prestige in the scientific community. Also, scientists derive job motivation from dedication to science which provides social status. Analysis of the model shows, on the one hand, a low equilibrium where the economy is endowed with a small science sector, researchers have high relative income but low prestige, and competition for discoveries is weak. On the other hand, there is a high equilibrium where the economy has a large science sector, scientists obtain for new findings high prestige but lower relative salaries and, as the e¤ect of creative destruction is strong, there is fierce competition among researchers. Comparative statics shows that if the scientific infrastructure is poor, policies that increase the marginal benefits from a discovery have perverse e¤ects, while policies aimed at improving the selection mechanism of researchers work well. The same policies have opposite effects at the high steady state.
|Date of creation:||15 May 2006|
|Contact details of provider:|| Postal: via Medina 40, 80133 I - Napoli|
Web page: http://economia.uniparthenope.it/ise/sito/index.htm
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Cooper, Ben & Garcia-Penalosa, Cecilia & Funk, Peter, 2001.
"Status Effects and Negative Utility Growth,"
Royal Economic Society, vol. 111(473), pages 642-65, July.
- Fershtman, C. & Murphy, K.M., 1993.
"Social Status, Education and Growth,"
8-93, Tel Aviv.
- Philippe Aghion & Mathias Dewatripont & Jeremy C. Stein, 2005.
"Academic Freedom, Private-Sector Focus, and the Process of Innovation,"
Harvard Institute of Economic Research Working Papers
2089, Harvard - Institute of Economic Research.
- Philippe Aghion & Mathias Dewatripont & Jeremy C. Stein, 2008. "Academic freedom, private-sector focus, and the process of innovation," RAND Journal of Economics, RAND Corporation, vol. 39(3), pages 617-635.
- Stein, Jeremy C. & Dewatripont, Mathias & Aghion, Philippe, 2008. "Academic Freedom, Private-Sector Focus, and the Process of Innovation," Scholarly Articles 3637074, Harvard University Department of Economics.
- Philippe Aghion & Mathias Dewatripont & Jeremy C. Stein, 2005. "Academic Freedom, Private-Sector Focus, and the Process of Innovation," NBER Working Papers 11542, National Bureau of Economic Research, Inc.
- Yoram Weiss & Chaim Fershtman, 1997.
"Social Status and Economic Performance: A Survey,"
University of Chicago - George G. Stigler Center for Study of Economy and State
139, Chicago - Center for Study of Economy and State.
- Mansfield, Edwin, 1995. "Academic Research Underlying Industrial Innovations:," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 55-65, February.
- Aghion, P. & Howitt, P., 1990.
"A Model Of Growth Through Creative Destruction,"
DELTA Working Papers
90-12, DELTA (Ecole normale supérieure).
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
- Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," UWO Department of Economics Working Papers 8904, University of Western Ontario, Department of Economics.
- Philippe Aghion & Peter Howitt, 1990. "A Model of Growth Through Creative Destruction," NBER Working Papers 3223, National Bureau of Economic Research, Inc.
- Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
- Joshua Aizenman & Ilan Noy, 2007.
"Prizes for basic research: Human capital, economic might and the shadow of history,"
Journal of Economic Growth,
Springer, vol. 12(3), pages 261-282, September.
- Ilan Noy & Joshua Aizenman, 2007. "Prizes for Basic Research -- Human Capital, Economic Might and the Shadow of History," Working Papers 200705, University of Hawaii at Manoa, Department of Economics.
- Joshua Aizenman & Ilan Noy, 2006. "Prizes for Basic Research -- Human Capital, Economic Might and the Shadow of History," NBER Working Papers 12226, National Bureau of Economic Research, Inc.
- Lazear, Edward P, 1997.
"Incentives in Basic Research,"
Journal of Labor Economics,
University of Chicago Press, vol. 15(1), pages 167-197, January.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
- Karl Shell, 2010. "A Model of Inventive Activity and Capital Accumulation," Levine's Working Paper Archive 1409, David K. Levine.
- Grandmont, Jean-Michel, 1985.
"On Endogenous Competitive Business Cycles,"
Econometric Society, vol. 53(5), pages 995-1045, September.
- Arthur M. Diamond Jr., 1986. "What is a Citation Worth?," Journal of Human Resources, University of Wisconsin Press, vol. 21(2), pages 200-215.
- Paul M Romer, 1999.
"Endogenous Technological Change,"
Levine's Working Paper Archive
2135, David K. Levine.
- Dasgupta, Partha & David, Paul, 1985. "Information Disclosure and the Economics of Science and Technology," CEPR Discussion Papers 73, C.E.P.R. Discussion Papers.
- Paula E. Stephan, 1996.
"The Economics of Science,"
Journal of Economic Literature,
American Economic Association, vol. 34(3), pages 1199-1235, September.
- Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August.
- Maria Rosaria Carillo & Erasmo Papagni & Fabian Capitanio, 2006.
"Effects of social interactions on Scientists’ productivity,"
19_2006, D.E.S. (Department of Economic Studies), University of Naples "Parthenope", Italy.
- Maria Rosaria Carillo, 2008. "Effects of social interactions on scientists' productivity," International Journal of Manpower, Emerald Group Publishing, vol. 29(3), pages 263-279, August.
- Carillo, Maria Rosaria & Papagni, Erasmo & Capitanio, Fabian, 2007. "Effects of social interactions on scientists' productivity," MPRA Paper 7880, University Library of Munich, Germany.
- Medio, Alfredo & Raines, Brian, 2007. "Backward dynamics in economics. The inverse limit approach," Journal of Economic Dynamics and Control, Elsevier, vol. 31(5), pages 1633-1671, May.
- Cole, Harold L & Mailath, George J & Postlewaite, Andrew, 1992. "Social Norms, Savings Behavior, and Growth," Journal of Political Economy, University of Chicago Press, vol. 100(6), pages 1092-1125, December.
- Li Lian Ong & Jason Mitchell, 2000. "Professors and hamburgers: an international comparison of real academic salaries," Applied Economics, Taylor & Francis Journals, vol. 32(7), pages 869-876.
- Mansfield, Edwin, 1991. "Academic research and industrial innovation," Research Policy, Elsevier, vol. 20(1), pages 1-12, February.
- Carlo Carraro & Domenico Siniscalco, 2003. "Science Versus Profit in Research," Journal of the European Economic Association, MIT Press, vol. 1(2-3), pages 576-590, 04/05.
When requesting a correction, please mention this item's handle: RePEc:prt:dpaper:10_2006. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Antonietta Milano)
If references are entirely missing, you can add them using this form.