Science-Based R&D in Schumpeterian Growth

Guido Cozzi and Silvia Galli ()

Working Papers from Business School - Economics, University of Glasgow

Abstract: Firm success is often associated with the development of better products. Private firms undertake applied R&D seeking market advantage, by capitalizing on the freely accessible results of basic research. But unpatentable basic research often fails to address applied R&D open problems. What is the role of the incentives in improving the innovative performance of an economy by matching partially motivated public researchers to their mission? Sometimes government funded research projects are mission-directed, yet in many cases the public sector academics indulge in carrier-driven research. An innovation system where, as in the US, also basic research is driven by patents, implicitly sets an ex-post incentive to the researchers guided by invisible hand. For a public innovation system - like the European one - designing an incentive scheme to motivate public researchers is of key importance for fostering the performance of the economic system. This paper extends the Schumpeterian multisector growth model with vertical innovation by highlighting a link between the degree of "targetness" of public research and aggregate innovation. A positive effect of social capital is also proved.

Keywords: Sequential Innovation; Research Tools; Basic Research; Knowledge Management; Social Capital. (search for similar items in EconPapers)
JEL-codes: H44 O31 O34 O38 (search for similar items in EconPapers)
Date: 2009-04
New Economics Papers: this item is included in nep-cse, nep-edu, nep-ent and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (27)

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Journal Article: SCIENCE‐BASED R&D IN SCHUMPETERIAN GROWTH (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:gla:glaewp:2009_19

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