R&D cooperation, proximity and distribution of public funding between public and private research sectors

Abstract

Most OECD countries have chosen to support innovation by funding both private and public research activities. These policies aim to stimulate research and increase the stock of knowledge to boost competitiveness and economic growth. The existence of technological spillovers leads firms to

Mission-oriented R&D and growth

“…These latter examples of effects changing over time point to the importance of discounting in the evaluation of results reported in Table 3. These results can be interpreted from the perspective of a Cournot model for several firms and one public research institute (Cabon-Dhersin & Gibert, 2020). Public and private R&D show positively (negatively) sloped reaction functions if public R&D has positive (negative) spillovers.…”

University–firm competition in basic research: Simultaneous versus sequential moves

“…Link and Scott (2005) establish empirically that larger RJVs are more likely than smaller RJVs to include a university as a research partner “because larger ventures are less likely to expect substantial additional appropriability problems to result because of the addition of a university partner and because the larger ventures have both a lower marginal cost and a higher marginal value from university R&D contributions to the ventures' innovative output”. On the basis of Organisation for Economic Cooperation and Development (OECD) data, Cabon‐Dhersin and Gibert (2019, 2020) report that governments in OECD countries allocate public R&D funding differently between the private and the public research sectors (the latter includes universities and public labs) with a greater proportion (at least two‐thirds) going to the public sector than that to the private sector.…”

“…The theoretical literature on university–firm relationships explores various aspects of this important nexus that include research and educational quality along with other factors. Cabon‐Dhersin and Gibert (2019, 2020) propose models combining interfirm spillovers and one‐way university‐to‐firm spillovers to shed light on the socially optimal funding of R&D and its relationship to spillovers, both in cooperative and noncooperative settings. Hatsor and Zilcha (2020) investigate efficient government subsidization of different classes of universities through student aid and selection.…”