Public subsidies and cooperation in research and development. Evidence from the lab
Antonio Acconcia,
Sergio Beraldo,
Carlo Capuano and
Marco Stimolo
No 317841, FEEM Working Papers from Fondazione Eni Enrico Mattei (FEEM)
Abstract:
We implement an experimental design based on a duopoly game in which subjects choose whether to cooperate in Research and Development (R&D) activities. We first conduct six experimental markets that differ in both the levels of knowledge spillovers and the intensity of competition. Consistently with the theory, we find that the probability of cooperation increases in the level of spillovers and decreases in that of market competition. We then replicate the experimental markets by providing subsidies to subjects who cooperate. Subsidies relevantly increase the probability of cooperation in focus markets, causing, however, a sensible reduction of R&D investments. Overall, our evidence suggests that, depending on the characteristics of the market, the use of public subsidies might be redundant, for firms would anyway joined their R&D efforts; or counterproductive, inducing firms to significantly reduce R&D investments compared to the non-cooperative scenario.
Keywords: Research and Development/Tech Change/Emerging Technologies; Research Methods/ Statistical Methods (search for similar items in EconPapers)
Pages: 37
Date: 2022-01-28
New Economics Papers: this item is included in nep-exp, nep-ino, nep-tid and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://ageconsearch.umn.edu/record/317841/files/NDL2022-002-new.pdf (application/pdf)
Related works:
Journal Article: Public Subsidies and Cooperation in Research and Development. Evidence from the LAB (2023) 
Working Paper: Public subsidies and cooperation in research and development: Evidence from the lab (2022) 
Working Paper: Public subsidies and cooperation in research and development. Evidence from the lab (2022) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:ags:feemwp:317841
DOI: 10.22004/ag.econ.317841
Access Statistics for this paper
More papers in FEEM Working Papers from Fondazione Eni Enrico Mattei (FEEM) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().