The study analyses how public research and development (R&D) financing impacts companies. The main goal is to study whether public and private R&D financing are substitutes or complements, and whether this impact differs between financially constrained and unconstrained companies.
Using a two-stage patent race model, the study shows a need for more expenditure on basic research to compensate for negative effect of the anti-commons on R&D.
The Federal Reserve paper highlights the issues discussed in the working paper, Public & Private Spillovers, Location and the Productivity of Pharmaceutical Research. Offering a laymans definition of knowledge spillovers, the paper presents the research findings and policy implications from the working paper. The authors caution that the research is based on pre-Internet patent activity and location decisions.
The authors present a method based on index number theory for estimating technical progress
and then apply it for estimating technical progress for Japanese manufacturing firms in the 1990s. Estimated technical progress is then used to test the above Griliches hypothesis.
The authors examine the impact of research and development (R&D) intensity and agency costs on the value of firms across 13 economies. Findings indicate that R&D adds value while high agency costs reduce value. R&D adds value, however, even when agency costs are high.
The report from the Government Accountability Office addresses eleven questions regarding the Department of Energys Laboratory Directed Research and Development (LDRD) program. From fiscal year 1998 through fiscal year 2003, DOE’s contractor operated laboratories spent a total of $1.8 billion, or an average of $296 million per year on LDRD.
The author evaluate the contribution of research and development (R&D) investments to productivity growth. The resulting contribution of R&D to productivity growth in the U.S. is smaller than three to five tenths of one percentage point. This constitutes an upper bound for the case where innovators internalize the consequences of their R&D investments on the cost of conducting
future innovations.
The paper traces the innovation pathways of new creations from research and development (R&D) activity through to intellectual property applications using enterprise panel data from 1989 to 2002. Results indicate that R&D activity is a highly path dependent process that relies heavily on firm specific effects.
The paper argues that while it is optimal to concentrate growth-enhancing activities in downturns, dynamic spillovers inherent to the research and development (R&D) process lead private agents to concentrate too much of their R&D
activity in booms, precisely when its social cost is highest.
The paper shows that public research subsidies do not have a significant effect on private research and development expenditures of non-public Danish firms that perform R&D and have more than ten employees.