Public policy towards R&D in oligopolistic industries

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Title: Public policy towards R&D in oligopolistic industries
Authors: Leahy, DermotNeary, J. Peter
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Date: Aug-1995
Online since: 2010-01-15T16:42:49Z
Abstract: This paper examines the free-market and socially-optimal outcomes in a dynamic oligopoly model with R&D spillovers. First-best optimal subsidies to R&D are higher when firms play strategically against each other, but lower when they cooperate on R&D (at least with high spillovers) and when they play strategically against the government. Second-best optimal subsidies to R&D are presumptively higher than first-best ones, but policies to encourage cooperation are likely to be redundant (since it is always privately profitable) and simulations suggest that the welfare cost of lax competition policy is high.
Item notes: A hard copy is available in UCD Library at GEN 330.08 IR/UNI
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP95/11
Keywords: Research & DevelopmentR&D spilloversR&D cooperationResearch joint venturesSubgame perfect equilibriumStrategic aspects of public policy
metadata.dc.subject.classification: D43; L13; O32
Subject LCSH: Research, Industrial
Commercial policy
Research, Industrial--Government policy
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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