Heart of Darkness: Modeling Public-Private Funding Interactions Inside the R&D Black Box
This paper is a first step toward closing the analytical gap in the extensive literature on the results of interactions between public and private R&D expenditures, and their joint effects on the economy. Earlier studies frequently report contradictory estimates of the response of company financed R&D to changes in the level and nature of public R&D expenditure. A major cause of "inconsistencies" in the empirical literature is the failure to recognize key differences among the various policy "experiments" being considered depending upon the economy in which they are embedded, and the type of public sector R&D spending that is contemplated. Using a simple, stylized structural model, we identify the main channels of impact of public R&D and characterize the various effects, distinguishing between short-run and long-run impacts that would show up in simple regression analyses of nominal public and private R&D expenditure variables. We offer interpretations that shed light on recent cross-section and panel data findings at both high (i.e. national) and low (specific technology area) levels of aggregation.
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.:
- Arthur M. Diamond, 1999. "Does Federal Funding "Crowd In" Private Funding Of Science?," Contemporary Economic Policy, Western Economic Association International, vol. 17(4), pages 423-431, October.
- Cowan Robin & David Paul & Foray Dominique, 1999.
"The Explicit Economics of Knowledge Codification and Tacitness,"
025, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
- Cowan, Robin & David, Paul A & Foray, Dominique, 2000. "The Explicit Economics of Knowledge Codification and Tacitness," Industrial and Corporate Change, Oxford University Press, vol. 9(2), pages 211-53, June.
- Robin Cowan & Paul A. David & Dominique Foray, 1999. "The Explicit Economics of Knowledge Codification and Tacitness," Working Papers 99027, Stanford University, Department of Economics.
- Charles I. Jones & John C. Williams, 1998.
"Measuring The Social Return To R&D,"
The Quarterly Journal of Economics,
MIT Press, vol. 113(4), pages 1119-1135, November.
- Charles I. Jones & John C. Williams, . "Measuring the Social Return to R&D," Working Papers 97002, Stanford University, Department of Economics.
- Charles I. Jones & John C. Williams, 1997. "Measuring the social return to R&D," Finance and Economics Discussion Series 1997-12, Board of Governors of the Federal Reserve System (U.S.).
- Goolsbee, Austan, 1998.
"Does Government R&D Policy Mainly Benefit Scientists and Engineers?,"
American Economic Review,
American Economic Association, vol. 88(2), pages 298-302, May.
- Austan Goolsbee, 1998. "Does Government R&D Policy Mainly Benefit Scientists and Engineers?," NBER Working Papers 6532, National Bureau of Economic Research, Inc.
- Bergstrom, Theodore & Blume, Lawrence & Varian, Hal, 1986. "On the private provision of public goods," Journal of Public Economics, Elsevier, vol. 29(1), pages 25-49, February.
- David, P. A., 1997.
"From market magic to calypso science policy a review of Terence Kealey's The economic laws of scientific research,"
Elsevier, vol. 26(2), pages 229-255, May.
- Paul A. David, 2005. "FROM MARKET MAGIC TO CALYPSO SCIENCE POLICY A Review of Terence Kealey's The Economic Laws of Scientific Research," Development and Comp Systems 0502013, EconWPA.
- Paula E. Stephan, 1996. "The Economics of Science," Journal of Economic Literature, American Economic Association, vol. 34(3), pages 1199-1235, September.
- Paul A. David, 1999. "The Political Economy of Public Science," Working Papers 99022, Stanford University, Department of Economics.
- Bruno Van Pottelsberghe & Dominique Guellec, 2001. "The effectiveness of public policies in R&D," ULB Institutional Repository 2013/6225, ULB -- Universite Libre de Bruxelles.
- Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September.
- Diamond, Arthur Jr., 2003. "Edwin Mansfield's contributions to the economics of technology," Research Policy, Elsevier, vol. 32(9), pages 1607-1617, October.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwppe:0012001. 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: (EconWPA)
If references are entirely missing, you can add them using this form.