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Subsidizing R&D cooperatives
De Economist (2001)
  • Jeroen Hinloopen
A framework is developed with which the implementation of two commonly used R&D-stimulating policies can be evaluated: providing R&D subsidies and sustaining the formation of R&D cooperatives. Subsidized R&D cooperatives can also be analyzed. The analysis shows that providing R&D subsidies is more effective in raising private R&D investments than sustaining R&D cooperatives. Moreover, optimally subsidizing cooperative R&D or noncooperative R&D leads to the same level of R&D activity. Sustaining R&D cooperatives thus appears to be a redundant industrial policy, all else equal.
  • R&D subsidies,
  • R&D cooperatives,
  • differentiated oligopoly,
  • Cournot competition,
  • Bertrand competition,
  • Technological spillovers
Publication Date
Citation Information
Jeroen Hinloopen. "Subsidizing R&D cooperatives" De Economist Vol. 149 Iss. 3 (2001) p. 313 - 345 ISSN: 0013-063X
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