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Cooperation or non-cooperation in R&D: how should research be funded? *

Marie-Laure Cabon-Dhersin () and Romain Gibert
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Marie-Laure Cabon-Dhersin: CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université
Romain Gibert: CREAM - Centre de Recherche en Economie Appliquée à la Mondialisation - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université

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Abstract: This article compares two research funding policies in a cooperative or non-cooperative R&D setting: subsidising private research (Spr) and subsidising public research (Spu). We show that the Spr policy induces better performance than the Spu approach in terms of overall net surplus whether firms cooperate or not in R&D. Nevertheless, subsidising public research leads to greater R&D investment overall provided that the knowledge externalities from the public to the private research sector are not too high. The Spu policy is more effective in terms of research efforts when firms cooperate and subsidies are low.

Keywords: R&D spillovers; Knowledge public externalities; R&D Cooperation; Subsidies; Public policy (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cdm, nep-cse and nep-ino
Date: 2017-09-13
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01587014
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