Subsidizing Technological Innovations in the Presence of R&D Spillovers

Subsidizing Technological Innovations in the Presence of R&D Spillovers

We analyze a situation where a principal wants to induce two firms to produce an output, e.g. electricity from renewable energy sources. Firms can undertake non-contractible investments to reduce production cost of the output. Part of these investments spills over and also reduces production cost of the other firm. Comparing a general price subsidy and an innovation tournament, we find that the...

Optimal Foreign Investment Dynamics in the Presence of Technological Spillovers

In this paper we present a dynamic model of a firm which decides whether to outsource parts of its production to a less developed economy where wages and the level of technology are lower. Outsourcing reduces production costs but is associated with spillovers to foreign potential competitors. Spillovers over time increase productivity of firms in the foreign country and make them stronger compe...

Recent Technological Innovations in Aquaculture

The Politics Of Technological Innovations: Network Approaches

By now, it is well known that the essential components of technological innovation include not only production and design but also consumption and uses, not only technological-engineering and organizational-economical structures but also social and cultural processes. In fact, “innovation involves more than merely research and development or product launch” (Silverstone & Haddon, 1996, p. 44). ...

The evolutionary ecology of technological innovations

SFI Working Papers contain accounts of scientific work of the author(s) and do not necessarily represent the views of the Santa Fe Institute. We accept papers intended for publication in peer-reviewed journals or proceedings volumes, but not papers that have already appeared in print. Except for papers by our external faculty, papers must be based on work done at SFI, inspired by an invited vis...