← Search

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

Michael König¹; Xiaodong Liu²; Yves Zenou³

¹ CEPR, Swiss Economics Institute, and VU Amsterdam · ² University of Colorado Boulder · ³ Monash University

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.

DOI

10.1162/rest_a_00762

Volume

101 (3)

Pages

476-491

Language

en

Export

BibTeX

Sources

crossref openalex