In this paper we analyse the impact of public R&D on private sector output. It is argued that public research expenditures will increase the input supply in private R&D and accordingly enlarge business sector output. We test the model on danish time series data over period 1973 to 1995.

Two rival firms must decide when to invest in R&D and whether the new products should be compatible. I show that network externalities may induce the firms to advance their introduction of new incompatible technologies.

Network externalities describe the phenomenon that a good becomes more valuable to each user the more other consumers use the same of a compatible product. Whereas most of the recent literature on network effects has focused on the adoption of products, this paper shows that network...

In this paper we study the effects of increasing imports and foreign firm supply, as a consequence of trade liberalization policies, on the innovative activities of firms in a small developing economy. This is an interesting case as very little research exists on the R&D investments of firms in...

In Europe and in Japan, patent applications are publicly disclosed after 18 months from the filing date regardless of whether a patent has been or will be registered. In the U.S. in contrast, patent applications are publicly disclosed only when a patent is granted. In this paper we examine the...

We illustrate by means of a dynamic research and development race that, while at some points in the race, social incentives and private incentives may coincide, at other points they may diverge-- too many researchers remain that race.