|
on Technology and Industrial Dynamics |
| By: | Maria José Gil Moltó; Joanna Poyago.Theotoky; Vasileios Zikos |
| Abstract: | We examine the use of subsidies to R&D in a mixed and a private duopoly market. We show that the socially optimal R&D subsidy is increasing in the degree of spillovers but it is lower in the private duopoly. The optimal R&D subsidy leads to an increase in total R&D and production, however, it does not lead to the equalisation of per firm output and therefore to an efficient distribution of production costs. We also find that privatization of the public firm reduces R&D activity and welfare in the duopoly market. This result stands even when optimal R&D subsidies are provided. |
| Keywords: | mixed duopoly; process innovation; R&D subsidies; privatization; spillovers. |
| JEL: | L31 L32 O38 L13 L50 |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:lec:leecon:10/19&r=tid |
| By: | Tatiana Plotnikova (DFG Research Training Program "The Economics of Innovative Change", Friedrich-Schiller-University Jena, Germany) |
| Abstract: | This paper investigates the determinants of success in the development of new drugs. In specific, it explores the factors of success in drug development programs at different stages of innovation process. We use economies of scale, scope, R&D competition and technological spillovers as explanatory variables and test whether the effect of these variables on the success of a project differs in relation to the discovery and development stages of innovation, respectively. Our main finding is that spillovers, including spillovers from collaboration, are important in explaining the success of projects during the discovery stage of innovation, while in the later development stage, the effects of competition outweigh any benefits from spillovers. |
| Keywords: | economies of scale and scope, spillovers, competition, R&D, innovation process |
| JEL: | O32 L25 L65 |
| Date: | 2010–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-045&r=tid |
| By: | Giulio Bottazzi (Sant'Anna School for Advanced Studies, Pisa); Tatiana Plotnikova (DFG Research Training Program "The Economics of Innovative Change", Friedrich-Schiller-University Jena, Germany) |
| Abstract: | This paper aims to investigate the effect of knowledge characteristics on the total factor productivity of firms developing drugs in the pharmaceutical industry. We decompose knowledge into knowledge associated with the technological firm portfolio and knowledge related to R&D projects, which represent drug development at the clinical testing stage. The latter is attributed to the knowledge of relevant markets where the drugs will be sold. The results show that the effect of technological coherence vs. market coherence and of accumulated knowledge on the productivity of firms differs. Productivity increases with the number of patents and decreases with the patent diversity and project portfolio coherence. When considering only the project knowledge, the diversity of the project portfolio positively affects productivity. |
| Keywords: | total factor productivity, diversity,,coherence, knowledge |
| JEL: | D24 O32 L25 L65 |
| Date: | 2010–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2010-044&r=tid |