We analyze the effects of a large place-based policy, subsidizing up to 50% of investment costs of manufacturing firms in East Germany after reunification. We show that a 1-percentage-point decrease in the subsidy rate leads to a 1% decrease in manufacturing employment. We document important...

Scientific research has come to dominate many American universities. Even with growing external support, increasingly the costs of scientific research are being funded out of internal university funds. Our paper explains why this is occuring, presents estimates of the magnitudes of start-up cost...

Despite their magnitude and potential economic impact, federal R&D expenditures outside of research universities have been little scrutinized by economists. This paper examines whether the series of initiatives since 1980 that have sought to encourage the patenting and technology transfer at the...

We analyze how variations in contractibility affect the design of contracts in the context of biotechnology research agreements. A major concern of firms financing biotechnology research is that the R&D firms might use the funding to subsidize other projects or substitute one project for...

Some preliminary evidence suggests the antiviral drug remdesivir can accelerate recovery from COVID-19, although (as of writing) there is no clear evidence it can actually save the lives of people with COVID-19. Given its promise, remdesivir has been given emergency use authorization by the Food...

This paper examines the impact of informational frictions when the entrepreneur anticipates having little or no bargaining power in negotiating with the financier and can select ex ante the innovation/venture he wants to develop. In this environment the entrepreneur faces a tradeoff between...

Scholars are beginning to develop theoretical analyses of the different forms of government funding that promote innovation. These analyses indicate the need for extensive empirical research into the comparative advantages and various abilities of differing governmental and private institutions....

This paper tries to account for impact from both R&D tax incentives and subsidies policies on firm innovation in China. Unlike most of the literature, we look at the joint effect of the two R&D policies when they are awarded to firms simultaneously rather than separately, measuring firm...

A major source of research funding for university professors are competitive research grants. With focus on Luxembourg, we present results from a difference-in-difference analysis which show that research grants by the Luxembourg National Research Fund (FNR), the central research funding agency...

In this paper we examine the effects of publicly financed infrastructure and R&D capital on the cost structure and productivity performance of twelve two-digit U.S. manufacturing industries. A general framework is developed to measure contribution of demand, relative input prices, technical...