Andrea, Canidio (2009): The production of science.
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I develop a model of science production where researchers are endogenously allocated to diﬀerent sectors (for proﬁt or non proﬁt), and to diﬀerent labs. The main assumption is that ﬁrms invest in research to increase their absorptive capacity: the ability to use and understand scientiﬁc ﬁndings produced elsewhere. Firms create absorptive capacity by building labs and hiring researchers in a competitive market. Because of externalities, ﬁrms underinvest in labs. More interestingly, re- searchers and labs are substitutes in the revenue function, even though they are complements in the research production function. This implies a novel form of ineﬃciency: for any given investment, the allocation of researchers to ﬁrms is non optimal. I introduce into the model universities and I assume that their mission is to produce science. I show that universities attract the best researchers, and that the allocation of researchers to labs within the university system maximizes the research output.
|Item Type:||MPRA Paper|
|Original Title:||The production of science|
|Keywords:||Organization of Scientiﬁc Research, Externality, Policy, Absorptive Capacity, Matching with Investment.|
|Subjects:||D - Microeconomics > D2 - Production and Organizations > D21 - Firm Behavior: Theory
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O38 - Government Policy
O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives
H - Public Economics > H2 - Taxation, Subsidies, and Revenue > H23 - Externalities ; Redistributive Effects ; Environmental Taxes and Subsidies
L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L22 - Firm Organization and Market Structure
|Depositing User:||Andrea Canidio|
|Date Deposited:||20. Sep 2010 17:01|
|Last Modified:||10. May 2014 20:24|
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