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R&D networks: Theory, empirics and policy implications

R&D networks: Theory, empirics and policy implications
R&D networks: Theory, empirics and policy implications
We analyze a model of R&D alliance networks where firms are engaged in R&D collaborations that lower their production costs while competing on the product market. We provide a complete characterization of the Nash equilibrium and determine the optimal R&D subsidy programthatmaximizestotalwelfare. Wethenstructurallyestimatethismodelusingaunique panel of R&D collaborations and annual company reports. We use our estimates to study the impact of targeted vs. non-discriminatory R&D subsidy policies and empirically rank firms according to the welfare-maximizing subsidies they should receive.
476–491
Konig, Michael
da631816-9b95-4405-9fe7-ee81723a03dc
Liu, Xiaodong
8a273952-e4cf-4345-b45c-072ba5ba74c3
Zenou, Yves
38bf0c72-462b-4c08-8fd1-ce365b0296dc
Konig, Michael
da631816-9b95-4405-9fe7-ee81723a03dc
Liu, Xiaodong
8a273952-e4cf-4345-b45c-072ba5ba74c3
Zenou, Yves
38bf0c72-462b-4c08-8fd1-ce365b0296dc

Konig, Michael, Liu, Xiaodong and Zenou, Yves (2019) R&D networks: Theory, empirics and policy implications. Review of Economics and Statistics, 101 (3), 476–491. (doi:10.1162/rest_a_00762).

Record type: Article

Abstract

We analyze a model of R&D alliance networks where firms are engaged in R&D collaborations that lower their production costs while competing on the product market. We provide a complete characterization of the Nash equilibrium and determine the optimal R&D subsidy programthatmaximizestotalwelfare. Wethenstructurallyestimatethismodelusingaunique panel of R&D collaborations and annual company reports. We use our estimates to study the impact of targeted vs. non-discriminatory R&D subsidy policies and empirically rank firms according to the welfare-maximizing subsidies they should receive.

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R&D paper - Accepted Manuscript
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Accepted/In Press date: 20 April 2018
e-pub ahead of print date: 28 June 2019
Published date: July 2019

Identifiers

Local EPrints ID: 421792
URI: http://eprints.soton.ac.uk/id/eprint/421792
PURE UUID: 10b824bc-5844-4485-8521-ca7d3edf1712
ORCID for Yves Zenou: ORCID iD orcid.org/0000-0001-6516-0812

Catalogue record

Date deposited: 27 Jun 2018 16:31
Last modified: 31 Jan 2020 05:02

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