The 2008 crash has left all the established economic doctrines - equilibrium models, real business cycles, disequilibria models - in disarray. Part of the problem is due to Smith’s "veil of ignorance": individuals unknowingly pursue society’s interest and, as a result, have no clue as to the macroeconomic effects of their actions: witness the Keynes and Leontief multipliers, the concept of value added, fiat money, Engel’s law and technical progress, to name but a few of the macrofoundations of microeconomics. A good viewpoint to take bearings anew lies in comparing the post-Great Depression institutions with those emerging from Thatcher and Reagan’s economic policies: deregulation, exogenous vs. endoge- nous money, shadow banking vs. Volcker’s Rule. Very simply, the banks, whose lending determined deposits after Roosevelt, and were a public service became private enterprises whose deposits determine lending. These underlay the great moderation preceding 2006, and the subsequent crash.

The Economic Institutions of Capitalism

Theory in Practice: Increasing Professional Effectiveness

The Theory of Monopolistic Competition.

The article reviews the book “Information Rules: A Strategic Guide to the Network Economy,” by Carl Shapiro and Hal R. Varian.

Information Rules: A Strategic Guide to the Network Economy

https://link.springer.com/content/pdf/10.1057%2Fjibs.1990.10.pdf

Managing across Borders: The Transnational Solution

This study focuses on the impact of innovation policies and R&D collaboration in Germany and Finland. We consider collaboration and subsidies as heterogeneous treatments, and perform an econometric matching to analyze R&D and patent activity at the firm level. In general, we find that collaboration has positive effects. In Germany, subsidies for individual research do neither exhibit a significant impact on R&D nor on patenting, but the innovative performance could be improved by additional incentives for collaboration. For Finnish companies, public funding is an important source of finance for R&D. Without subsidies, recipients would show less R&D and patenting activity, whilst those firms not receiving subsidies would perform significantly better if they were publicly funded. Copyright © 2007 John Wiley & Sons, Ltd.

The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany

This paper analyses the impact of public innovation subsidies on private innovation expenditure. In the empirical economic literature there is still no common support for the hypothesis of either a complementary or a substitutive relationship between public funding and private investment. We investigate whether firms of the German service sector increase their innovation effort when participating in public policy schemes. Cross-sectional data at the firm level are used to estimate the effect of subsidisation. Applying a non-parametric matching approach we find evidence that the hypothesis of complete crowding-out effects between public and private funds can be rejected.

https://www.econstor.eu/bitstream/10419/24802/1/dp0204.pdf

Do Innovation Subsidies Crowd Out Private Investment? Evidence from the German Service Sector

The stimulation of co-operations has become very popular in R&D policies in recent years. This paper describes the history of R&D funding in Germany with a focus on the development of measures encouraging collaborative R&D activities among firms and public research institutions. We investigate empirically the impact of such measures on patenting activity at the firm level. The microeconometric results show that collaborating firms are more likely to patent than others. Within the group of collaborating firms, participants in publicly sponsored R&D consortia exhibit a higher propensity to patent than firms in non-sponsored networks.

/pdf/publicly-funded-r-d-collaborations-and-patent-outcome-in-4t12npcl5u.pdf

Publicly Funded R&D Collaborations and Patent Outcome in Germany

This study focuses on the impact of innovation policies and R&D collaboration in Germany and Finland. We consider collaboration and subsidies as heterogeneous treatments, and perform an econometric matching to analyze patent activity at the firm level. In general, we find that collaboration has positive effects. In Germany, subsidies for individual research do not exhibit a significant impact on patent activity, but the innovative performance could be improved by additional incentives for collaboration. For Finnish companies, public funding is an important source of finance for R&D. Without subsidies, recipients would show less patenting activity, whilst those firms not receiving subsidies would perform significantly better if they were publicly funded.

/pdf/the-relationship-between-r-d-collaboration-subsidies-and-50toe0eogg.pdf

The Relationship between R&D Collaboration, Subsidies and Patenting Activity: Empirical Evidence from Finland and Germany

The stimulation of co-operations and networks has become very popular in R&D policies in recent years. This study examines the development and the impact of publicly funded R&D consortia in Germany. The paper describes the history of R&D funding in Germany with a focus on the development of measures encouraging collaborative R&D activities among firms and public research institutions. Due to a recent shift of policies to more competitive procedures in awarding public funds for R&D, we investigate empirically the impact of such measures on patenting activity at the firm level. The microeconometric results show that collaborating firms are more likely to patent than others. Within the group of collaborating firms, participants in publicly sponsored R&D consortia exhibit a higher propensity to patent than firms in non-sponsored networks. Especially SMEs seem to benefit from spillovers which makes their application for patents more likely.

Andreas Fier

Papers

The relationship between R&D collaboration, subsidies and R&D performance: Empirical evidence from Finland and Germany

Do Innovation Subsidies Crowd Out Private Investment? Evidence from the German Service Sector

Publicly Funded R&D Collaborations and Patent Outcome in Germany

The Relationship between R&D Collaboration, Subsidies and Patenting Activity: Empirical Evidence from Finland and Germany

Publicly Funded R&D Collaborations and Patent Outcome in Germany