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on Economics of Strategic Management |
| By: | Fletcher, Joshua (RTI International); Howard, Eric (University of North Carolina at Greensboro, Department of Economics); Link, Albert (University of North Carolina at Greensboro, Department of Economics); O'Connor, Alan (University of North Carolina at Greensboro, Department of Economics) |
| Abstract: | This paper explores the impact that external sources of information have on the effectiveness of R&D in small, entrepreneurial firms. The effectiveness of R&D is measured in terms of two probabilities; the probability that a firm that received and completed a Phase I SBIR-funded research project is invited to submit a proposal for a Phase II award, and given such an invitation, the probability that a firm receives the Phase II award. Information from competitors is an important, in a statistical sense, covariate with the probability of being asked to submit a Phase II proposal whereas information from suppliers and customers in an important covariate with the probability of receiving a Phase II award. |
| Keywords: | Small Business Innovation Research (SBIR) program; small firms; entrepreneurial firms; R&D; knowledge sources; program evaluation; |
| JEL: | H43 L26 O31 O32 O38 |
| Date: | 2022–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2022_002&r= |
| By: | Bárcena-Ruiz, Juan Carlos; Garzón, Maria Begoña; Sagasta, Amagoia |
| Abstract: | The literature on the environment has analyzed how firms carry out R&D to reduce their pollutant emissions, assuming that they maximize profits. However, empirical evidence shows that firms are increasingly concerned about Environmental Corporate Social Responsibility (ECSR). Following that evidence, we consider that the objective function of firms incorporates the environmental damage they generate as part of their social concern. We find that how firms perform environmental R&D depends crucially on the degree to which they care about ECSR. If that degree is low enough, firms agree to set up an Environmental Research Joint Venture (ERJV) under which they coordinate their R&D investments and fully share their technological knowledge. This is the result obtained when firms maximize profits. If the degree is high enough, firms enter into an ERJV in which each fully shares its technological expertise but they do not coordinate their R&D investments. Finally, if the degree is intermediate, firms neither set up an ERJV nor disclose information. Social welfare is the highest and environmental damage the lowest if firms form an ERJV and coordinate their R&D investments. Therefore, the way in which firms organize their R&D activities is not always the most socially preferable. |
| Keywords: | environmental corporate social responsibility; environmental tax; endogenous spillovers; R&D competition; Research Joint Ventures. |
| JEL: | D43 L13 L22 Q56 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113060&r= |