The Economics of Scientific Research Coalitions: Collaborative Network Formation in the Presence of Multiple Funding Agencies
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 distribution (as that will be affected by the allocation of funding). In the second part of the analysis, various combinations of national and supra-national funding regimes are examined, but all the rules considered stipulate that collaborations are funded as a whole, regardless of the number of members; and that their funding is determined by the absolute level of average reputation, or of the variance in reputation, rather than just the rankings of the proposed networks. The Nash equilibria associated with each of the stipulated funding regimes can be compared, and to characterize the outcomes, the paper examines these two moments of the endogenously determined distributions research “competence” (signaled by the reputation measures) within the entire ensemble of research units and its national partitions. A numerical simulation helps illustrate the nature of the conclusions for policy design that can be drawn from this style of analysis.
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.:
- 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.
- Stephan, Paula E., 2010.
"The Economics of Science,"
Handbook of the Economics of Innovation,
- repec:adr:anecst:y:1998:i:49-50:p:07 is not listed on IDEAS
- 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.
- Debraj Ray & Rajiv Vohra, 1996.
"A Theory of Endogenous Coalition Structure,"
0068, Boston University - Industry Studies Programme.
- 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.
- Ashish Arora & Paul David & Alfonso Gambardella, 1998. "Reputation and Competence in Publicly Funded Science: Estimating the Effects on Research Group Productivity," Annals of Economics and Statistics, GENES, issue 49-50, pages 163-198.
- 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.
- 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.
- Paul A. David, 2001. "From Keeping 'Nature's Secrets' to the Institutionalization of 'Open Science'," Working Papers 01006, Stanford University, Department of Economics.
- Ashish Arora & Alfonso Gambardella, 1996. "Reputation and competence in publicly funded scientific research," Industrial Organization 9605002, EconWPA.
- repec:adr:anecst:y:1998:i:49-50:p:06 is not listed on IDEAS
- Sharp, Margaret, 1998. "Competitiveness and cohesion--are the two compatible?," Research Policy, Elsevier, vol. 27(6), pages 569-588, September.
- 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.
- Alfonso Gambardella & Walter Garcia Fontes, 1994. "Regional linkages through European research funding," Economics Working Papers 97, Department of Economics and Business, Universitat Pompeu Fabra.
- Walter Garcia Fontes & Aldo Geuna, 1995.
"The dynamics of research networks in Brite-Euram,"
Economics Working Papers
132, Department of Economics and Business, Universitat Pompeu Fabra, revised Jul 1995.
- repec:adr:anecst:y:1998:i:49-50 is not listed on IDEAS
- Katz, J. Sylvan & Martin, Ben R., 1997. "What is research collaboration?," Research Policy, Elsevier, vol. 26(1), pages 1-18, March.
- Francis Bloch, 1995. "Endogenous Structures of Association in Oligopolies," RAND Journal of Economics, The RAND Corporation, vol. 26(3), pages 537-556, Autumn.
- 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).
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwppe:0502004. 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.