A Theory of Private Research Funding

Arbeitspapier

Research can be carried out in academia, or in the private sector, or as a mixture, for example as privately funded academic research. We develop a theoretical framework in which private research funding (PRF) transfers information about the value of a research project from the private sector into academia, in an incentive compatible way. PRF dominates neither pure academia nor private research. We derive predictions about the optimal sequence of research designs, and about the optimal duration of a project within different designs. For example, PRF is never optimal if not preceded by pure academical research. We compare our results with stylized facts.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Diskussionsbeitrag ; No. 481

Classification and Topics

• Classification: Wirtschaft ; Comparison of Public and Private Enterprises and Nonprofit Institutions; Privatization; Contracting Out ; National Government Expenditures and Education ; Innovation and Invention: Processes and Incentives
• Subject: Innovation ; Research Funding ; Research Finance ; R\& D ; Academia ; University Finance.

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Friedrici, Karola ; Hakenes, Hendrik
• Event: Veröffentlichung
• (who): Leibniz Universität Hannover, Wirtschaftswissenschaftliche Fakultät
• (where): Hannover
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/73132
• Last update: 10.03.2025, 11:41 AM CET