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R&D cooperation, proximity and distribution of public funding between public and private research sectors

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: In this paper, we compare the distributions of socially optimal public funding between private and public research sectors in cooperative and non-cooperative R&D settings in the presence of externalities. We show that the proportion of public funding allocated to the private sector research always increases with the level of inter-firm spillovers but decreases with the concentration of the industry. This share is smaller (larger) when firms cooperate in R&D than when they do not for high (low) spillovers. Moreover, increases in public knowledge externalities to the private sector due to a closer proximity between the two research sectors increase the share allocated to the public sector regardless of whether firms cooperate or not in R&D.

Keywords: public and private research; Knowledge public exter-nalities; Spillovers; R&D Cooperation; Oligopoly; proximity; Public policy (search for similar items in EconPapers)
Date: 2019-02-04
New Economics Papers: this item is included in nep-ino, nep-knm, nep-sbm and nep-tid
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-02006489
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Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-02006489

DOI: 10.1111/manc.12340

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