This path-breaking book addresses the economics of knowledge in universities and, in particular, asks how the changing structure of university research funding influences research behaviour. The author considers the relationship between the allocation of funds and university scientific research...

We reconsider the justifications of R&D subsidies by Spencer and Brander (1983) and others by allowing firms to pool R&D investments and license innovations. In equilibrium R&D joint ventures are formed and licensing occurs in a way that eliminates the strategic benefits of R&D investment in the...