Workers have different abilities in research, development and innovation (R&D&I) activities. Firms have different “prospects for innovation”. Innovation is facilitated by matching innovators, i.e. workers that are specialized in R&D&I to firms with good prospects for innovation. Aggregate...

The bulk of innovation subsidies in Finland are allocated to firms in industries where the employment share of “innovators,” i.e., workers who are specialized in R&D&I, is very high. The average subsidy per employee is typically the highest among young firms. At the firm level, an increase...

Regions vary strongly according to the participation of firms in R&Dactivity.By linking data on R&D activity at thefirm level with GIS based data on economic, and other locationfeatures of zoneswe are able to investigate the impactof local factors on R&D involvement for various types of...

We develop a model of strategic networks that captures two distinctive features of interfirm collaboration: bilateral agreements and nonexclusive relationships. Our analysis highlights the relationship between market competition, firms' incentives to invest in R&D, and the architecture of...

We develop a model of R&D collaboration in which individual firms carry out in-house research on core activities and undertake bilateral joint projects on non-core activities with other firms. We develop conditions on the profit functions of the firm under which R&D investments in different...

How does risk or uncertainty in the productivity of research affect the growth rate of the economy? To answer this question, a model of endogenous technological change is used where sustained growth stems from intentional investments in R&D from profit-maximizing firms. The uncertainty arises...

We study a two-stage R&D project with an abandonment option. Two types of uncertainty influence the decision to start R&D. Demand uncertainty is modelled as a lottery between a proportional increase and decrease in demand. Technical uncertainty is modelled as a lottery between a decrease and...

Nachdem die chinesische Volkswirtschaft im Verlauf der 1990er Jahre zur Werkbank der Welt” aufgestiegen war, ist angesichts massiv ausgeweiteter F&E Budgets in den letzten Jahren die Frage aufgekommen, inwiefern China in naher Zukunft nicht auch zur Wissensfabrik der Welt aufsteigen könnte....

Die Chemische und Pharmazeutische Industrie ist nicht zuletzt wegen ihrer starken Export- und Forschungsorientierung einer der Wachstumsträger der deutschen Volkswirtschaft. Prinzipiell gilt dies auch für Ostdeutschland. Wie in diesem Beitrag gezeigt wird, sind insbesondere die dortigen...

This work introduces a new model to investigate the efficiency and evolution of networks of firms exchanging knowledge in R&D partnerships. We first examine the efficiency of a given network structure in terms of the maximization of total profits in the industry. We show that the efficient...