An Evaluation of Federal Policy Instruments to Stimulate Basic Research in Industry

A model of the resource allocation behavior of a group of firms demonstrates that unaided industry allocation to basic (inappropriable) research is suboptimal. Furthermore, provision of seed money is generally counterproductive, while the provision of a matching subsidy is not very cost-efficient in increasing the allocation. Innovative policy alternatives are proposed.

• 저널Management Science · 29(9) · 997–1015
• 토픽Innovation Policy and R&D · Economics and Econometrics
• DOI10.1287/mnsc.29.9.997
• 저자Prafulla Joglekar, Morris Hamburg