R&D Networks: Theory, Empirics and Policy Implications: Theory, Empirics, and Policy Implications

Michael D. König, Xiaodong Liu, Yves Zenou

Research output: Contribution to JournalArticleAcademicpeer-review

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 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.
Original languageEnglish
Pages (from-to)476-491
Number of pages16
JournalReview of Economics and Statistics
Volume101
Issue number3
Early online date28 Jun 2019
DOIs
Publication statusPublished - Jul 2019

Fingerprint

empirics
subsidy
welfare
firm
production costs
market
Subsidies
Policy implications
Empirics
Network theory

Cite this

@article{074d0235c6b449e4b9cf343a1e5b38e0,
title = "R&D Networks: Theory, Empirics and Policy Implications: Theory, Empirics, and Policy Implications",
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 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.",
author = "K{\"o}nig, {Michael D.} and Xiaodong Liu and Yves Zenou",
year = "2019",
month = "7",
doi = "10.1162/rest_a_00762",
language = "English",
volume = "101",
pages = "476--491",
journal = "Review of Economics and Statistics",
issn = "0034-6535",
publisher = "MIT Press Journals",
number = "3",

}

R&D Networks: Theory, Empirics and Policy Implications : Theory, Empirics, and Policy Implications. / König, Michael D.; Liu, Xiaodong; Zenou, Yves.

In: Review of Economics and Statistics, Vol. 101, No. 3, 07.2019, p. 476-491.

Research output: Contribution to JournalArticleAcademicpeer-review

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.

UR - http://www.scopus.com/inward/record.url?scp=85068125560&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=85068125560&partnerID=8YFLogxK

U2 - 10.1162/rest_a_00762

DO - 10.1162/rest_a_00762

M3 - Article

VL - 101

SP - 476

EP - 491

JO - Review of Economics and Statistics

JF - Review of Economics and Statistics

SN - 0034-6535

IS - 3

ER -