The impact of uncertainty and spillovers on the direction of R&D policy

• Main Authors: Shih-Chuan Lin, 林士全
• Other Authors: Chao-Cheng Mai
• Format: Others
• Language: zh-TW
• Published: 2008
• Online Access: http://ndltd.ncl.edu.tw/handle/75508565425510508295

碩士 === 淡江大學 === 產業經濟學系碩士班 === 96 === This paper extends the Brander-Spencer (1983) model by certainty considering R&D spillovers. We examine the impacts of R&D spillover on firms’ choices of strategic variables under R&D policy with and/or without un/certainty is well as market demand uncertainty. We show that both R&D spillovers and the type of uncertainties are important in affecting the direction of optimal R&D policy when firms engage in international R&D competition. When the type of uncertainty is policy uncertainty, increasing uncertainty will reduce firms’ R&D level in the case of strategic complements. With demand uncertainty, however, firms’ R&D levels in the case of strategic complements are increasing as long as the uncertainty is increasing. When R&D spillover is significant and the strategic effect of subsidy overweight the shift effect of subsidy, then the policy maker will tax the firm 1. When the shift effect of subsidy exceeds the strategic effect of subsidy, the optimal policy is a R&D subsidy.