TY - JOUR
T1 - R&D Networks: Theory, Empirics and Policy Implications
T2 - Theory, Empirics, and Policy Implications
AU - König, Michael D.
AU - Liu, Xiaodong
AU - Zenou, Yves
PY - 2019/7
Y1 - 2019/7
N2 - 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 program that maximizes total welfare. We then structurally estimate this model using a unique 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.
AB - 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 program that maximizes total welfare. We then structurally estimate this model using a unique 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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UR - https://dataverse.harvard.edu/dataset.xhtml?persistentId=doi:10.7910/DVN/0QJQGM
U2 - 10.1162/rest_a_00762
DO - 10.1162/rest_a_00762
M3 - Article
AN - SCOPUS:85068125560
VL - 101
SP - 476
EP - 491
JO - Review of Economics and Statistics
JF - Review of Economics and Statistics
SN - 0034-6535
IS - 3
ER -