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

By Michael D. König, Xiaodong Liu, Yves Zenou. Review of Economics and Statistics, 2019

113 citations recorded by the source corpus.

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 versus nondiscriminatory R&D subsidy policies and empirically rank firms according to the welfare-maximizing subsidies they should receive.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/83ad93d730241d0bf99b007d6cfc4ba45e8a9e6c

Citations in the corpus

• The Economic Consequences of Social Network Structure (2017, unknown): “Networks that look more like trees can enable an individual to misbehave in some relationships, and never have that information come back to affect other relationships (Raub and Weesie (1990), Lippert and Spagnolo (2011), Ali and Miller (2012, 2013)).”