TU Darmstadt / ULB / TUprints

Subsidizing Technological Innovations in the Presence of R&D Spillovers

Helm, Carsten and Schöttner, Anja :
Subsidizing Technological Innovations in the Presence of R&D Spillovers.
In: Darmstadt Discussion Papers in Economics, 154. Darmstadt
[Report], (2005)

[img]
Preview
Text
ddpie_154.pdf
Available under Creative Commons Public Domain.

Download (187kB) | Preview
Item Type: Report
Title: Subsidizing Technological Innovations in the Presence of R&D Spillovers
Language: English
Abstract:

We analyze a situation where a principal wants to induce firms to produce an output, e.g. electricity from renewable energy sources. Firms can undertake non-contractible investments to reduce production costs of the output. Parts of these investments spills over and also reduce production costs of the other firm. Comparing the general price subsidy and an innovation tournament, we find that the principal's expected cost of implementing a given expected output are always higher under the tournament, even though this scheme may lead to more innovation.

Series Name: Darmstadt Discussion Papers in Economics
Volume: 154
Place of Publication: Darmstadt
Uncontrolled Keywords: R&D spillovers, tournaments, subsidies, moral hazard
Classification DDC: 300 Sozialwissenschaften > 330 Wirtschaft
Divisions: 01 Law and Economics > Volkswirtschaftliche Fachgebiete > Angewandte Mikroökonomik und Institutionenökonomik
01 Law and Economics > Volkswirtschaftliche Fachgebiete
01 Law and Economics
Date Deposited: 22 Oct 2009 11:42
Last Modified: 29 Jan 2016 09:30
URN: urn:nbn:de:tuda-tuprints-47722
Additional Information:

JEL - Classification : Q55, D82, H23, D43

Additional Information:

JEL - Classification : Q55, D82, H23, D43

URI: http://tuprints.ulb.tu-darmstadt.de/id/eprint/4772
Export:
Actions (login required)
View Item View Item

Downloads

Downloads per month over past year