A Theoretical Analysis of Public Funding for Research

Gianni De Fraja

No 11/31, Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester

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 then 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: 2011-05, Revised 2011-06
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.le.ac.uk/economics/research/RePEc/lec/leecon/dp11-31.pdf (application/pdf)

Related works:
Working Paper: A Theoretical Analysis of Public Funding for Research (2011)
Working Paper: A Theoretical Analysis of Public Funding for Research (2011)
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:lec:leecon:11/31

Ordering information: This working paper can be ordered from
https://www2.le.ac.u ... -1/discussion-papers

Access Statistics for this paper

More papers in Discussion Papers in Economics from Division of Economics, School of Business, University of Leicester School of Business, University of Leicester, University Road. Leicester. LE1 7RH. UK Provider-Homepage: https://le.ac.uk/school-of-business. Contact information at EDIRC.
Bibliographic data for series maintained by Abbie Sleath ().