A Theoretical Analysis of Public Funding for Research

Gianni De Fraja

No 8442, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: This paper studies government funding for scientific research. Funds must be distributed among different research institutions and allocated between basic and applied research. Informational constraints prevent less productive institutions to be given any government funding. In order to internalise the beneficial effects of research, the government requires the most productive institutions to carry out more applied research than they would like. Funding for basic research is used by the government to induce more productive institutions to carry out more applied research than they would like.

Keywords: Basic and applied research; R&; d; Scientific advances (search for similar items in EconPapers)
JEL-codes: D82 H42 O38 (search for similar items in EconPapers)
Date: 2011-06
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: A Theoretical Analysis of Public Funding for Research (2011)
Working Paper: A Theoretical Analysis of Public Funding for Research (2011)
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