Reluctance to pursue breakthrough research: A signaling explanation

Damien Besancenot and Radu Vranceanu

Research Policy, 2024, vol. 53, issue 4

Abstract: The current state of scientific research is disappointing due to the lack of significant breakthroughs, despite an ever-increasing number of publications and substantial resources invested in R&D activities. This paper proposes a signaling model as a complementary explanation to this phenomenon. If managers of research institutions can observe publications but are unable to observe breakthrough innovations, low-skilled scholars might reduce their investment in exploratory research and instead invest time in publishing as many papers as high-skilled scholars. This would allow them to claim the same level of compensation. In response to the imitation by low-skilled scholars, high-skilled scholars would publish even more, reaching a point where low-skilled scholars would abandon the imitation strategy. This mechanism leads to an equilibrium with (1) insufficient investment in exploratory research by high-skilled scholars, (2) excessive focus on publishing papers, (3) reduced effectiveness of resource-based incentives for exploratory research, and (4) reduced effectiveness of reward-based incentives for research.

Keywords: Economics of science; Breakthrough innovation; Multi-task; Signaling (search for similar items in EconPapers)
JEL-codes: D82 O30 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:53:y:2024:i:4:s0048733324000234

DOI: 10.1016/j.respol.2024.104974

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