R&D Subsidies, Spillovers and Privatization in Mixed Markets

Maria José Gil-Moltó, Joanna Poyago-Theotoky and Vasileios Zikos
Authors registered in the RePEc Author Service: Maria Jose Gil Molto

No 1008, CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm

Abstract: We examine the use of subsidies to R&D in a mixed and a private duopoly market. We show that the socially optimal R&D subsidy is increasing in the degree of spillovers but it is lower in the private duopoly. The optimal R&D subsidy leads to an increase in total R&D and production, however, it does not lead to the equalisation of per fi?rm output and therefore to an efficient distribution of production costs. We also find that privatization of the public firm reduces R&D activity and welfare in the duopoly market. This result stands even when optimal R&D subsidies are provided.

Keywords: Keywords: mixed duopoly; process innovation; R&D subsidies; privatization; spillovers. (search for similar items in EconPapers)
JEL-codes: L13 L31 L32 L50 O38 (search for similar items in EconPapers)
Date: 2010-10
New Economics Papers: this item is included in nep-com, nep-ino, nep-sbm and nep-tid
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.st-andrews.ac.uk/~www_crieff/papers/dp1008.pdf (application/pdf)

Related works:
Journal Article: R&D Subsidies, Spillovers, and Privatization in Mixed Markets (2011)
Working Paper: R&D Subsidies, Spillovers and Privatization in Mixed Markets (2010)
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:san:crieff:1008

Access Statistics for this paper

More papers in CRIEFF Discussion Papers from Centre for Research into Industry, Enterprise, Finance and the Firm Department of Economics, Castlecliffe, The Scores, St Andrews, KY16 9AZ. Contact information at EDIRC.
Bibliographic data for series maintained by Department of Economics, The University of St Andrews Business School ().