University-firm competition in basic research and university funding policy

Rune Stenbacka; Mihkel Tombak

doi:10.1111/jpet.12434

University-firm competition in basic research and university funding policy

Rune Stenbacka^*, Mihkel Tombak

^*Corresponding author for this work

Economics, Helsinki

University of Toronto

Research output: Contribution to journal › Article › Scientific › peer-review

7 Citations (Scopus)

Abstract

We characterize equilibrium investments in basic research by the commercial and university sectors contingent on public funding of the university. We find that firms invest in basic research despite the opportunities for free riding and we present conditions under which firms even have incentives to augment the public funding to the university. We characterize the socially optimal volume of public funding for the university sector. Finally, we compare total investments in a mixed duopoly with those of duopolies composed of two universities as well as two profit‐maximizing firms.

Original language	English
Peer-reviewed scientific journal	Journal of Public Economic Theory
Volume	22
Issue number	4
Pages (from-to)	1017-1040
Number of pages	24
ISSN	1097-3923
DOIs	https://doi.org/10.1111/jpet.12434
Publication status	Published - 09.03.2020
MoE publication type	A1 Journal article - refereed

Keywords

511 Economics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Access to Document

10.1111/jpet.12434Licence: CC BY-NC

jpet.12434Final published version, 0.98 MBLicence: CC BY-NC

OpenUrl availability

Full text

Cite this

@article{7770952436344d07a6413ecc679daa00,

title = "University-firm competition in basic research and university funding policy",

abstract = "We characterize equilibrium investments in basic research by the commercial and university sectors contingent on public funding of the university. We find that firms invest in basic research despite the opportunities for free riding and we present conditions under which firms even have incentives to augment the public funding to the university. We characterize the socially optimal volume of public funding for the university sector. Finally, we compare total investments in a mixed duopoly with those of duopolies composed of two universities as well as two profit‐maximizing firms.",

keywords = "511 Economics",

author = "Rune Stenbacka and Mihkel Tombak",

year = "2020",

month = mar,

day = "9",

doi = "10.1111/jpet.12434",

language = "English",

volume = "22",

pages = "1017--1040",

journal = "Journal of Public Economic Theory",

issn = "1097-3923",

publisher = "John Wiley & Sons",

number = "4",

}

TY - JOUR

T1 - University-firm competition in basic research and university funding policy

AU - Stenbacka, Rune

AU - Tombak, Mihkel

PY - 2020/3/9

Y1 - 2020/3/9

N2 - We characterize equilibrium investments in basic research by the commercial and university sectors contingent on public funding of the university. We find that firms invest in basic research despite the opportunities for free riding and we present conditions under which firms even have incentives to augment the public funding to the university. We characterize the socially optimal volume of public funding for the university sector. Finally, we compare total investments in a mixed duopoly with those of duopolies composed of two universities as well as two profit‐maximizing firms.

AB - We characterize equilibrium investments in basic research by the commercial and university sectors contingent on public funding of the university. We find that firms invest in basic research despite the opportunities for free riding and we present conditions under which firms even have incentives to augment the public funding to the university. We characterize the socially optimal volume of public funding for the university sector. Finally, we compare total investments in a mixed duopoly with those of duopolies composed of two universities as well as two profit‐maximizing firms.

KW - 511 Economics

UR - http://www.scopus.com/inward/record.url?scp=85081249125&partnerID=8YFLogxK

U2 - 10.1111/jpet.12434

DO - 10.1111/jpet.12434

M3 - Article

SN - 1097-3923

VL - 22

SP - 1017

EP - 1040

JO - Journal of Public Economic Theory

JF - Journal of Public Economic Theory

IS - 4

ER -

University-firm competition in basic research and university funding policy

Abstract

Keywords

UN SDGs

Access to Document

OpenUrl availability

Other files and links

Fingerprint

Cite this