{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,1,24]],"date-time":"2026-01-24T17:35:20Z","timestamp":1769276120033,"version":"3.49.0"},"reference-count":48,"publisher":"Wiley","issue":"6","license":[{"start":{"date-parts":[[2019,11,11]],"date-time":"2019-11-11T00:00:00Z","timestamp":1573430400000},"content-version":"vor","delay-in-days":0,"URL":"http:\/\/onlinelibrary.wiley.com\/termsAndConditions#vor"}],"content-domain":{"domain":["onlinelibrary.wiley.com"],"crossmark-restriction":true},"short-container-title":["J Public Economic Theory"],"published-print":{"date-parts":[[2019,12]]},"abstract":"<jats:title>Abstract<\/jats:title><jats:p>This paper provides a thorough second\u2010best welfare analysis of the standard two\u2010stage model of R&amp;D\/product market competition with R&amp;D spillovers. The planner's solution is compared to the standard non\u2010cooperative scenario, the R&amp;D cartel, and the cartelized research joint venture (or joint lab). We introduce the notion of a social joint lab, as a way for the planner to avoid wasteful R&amp;D duplication. With no spillovers, the non\u2010cooperative scenario, the joint lab, and the second\u2010best planner's solutions coincide. However, with spillovers, all three scenarios yield R&amp;D investments that fall short of the socially optimal level. To shed light on the role of the spillover level on these comparisons, we observe that the gaps between the market outcomes and the planners\u00a0solutions widen as the spillover parameter increases. Finally, we establish that a social <jats:italic>planner<\/jats:italic> and a social joint lab solutions may be achieved starting from any of the three scenarios by offering firms respective suitably weighted quadratic R&amp;D subsidization schedules.<\/jats:p>","DOI":"10.1111\/jpet.12411","type":"journal-article","created":{"date-parts":[[2019,11,11]],"date-time":"2019-11-11T12:01:26Z","timestamp":1573473686000},"page":"1200-1220","update-policy":"https:\/\/doi.org\/10.1002\/crossmark_policy","source":"Crossref","is-referenced-by-count":36,"title":["Spillovers, subsidies, and second\u2010best socially optimal R&amp;D"],"prefix":"10.1111","volume":"21","author":[{"ORCID":"https:\/\/orcid.org\/0000-0003-4971-8438","authenticated-orcid":false,"given":"Rabah","family":"Amir","sequence":"first","affiliation":[{"name":"Department of Economics University of Iowa Iowa City Iowa"},{"name":"Max Planck Institute for Tax Law and Public Finance Munich Germany"}]},{"given":"Huizhong","family":"Liu","sequence":"additional","affiliation":[{"name":"Wenlan School of Business Zhongnan University of Economics and Law Wuhan China"}]},{"given":"Dominika","family":"Machowska","sequence":"additional","affiliation":[{"name":"Department of Econometrics University of Lodz  Poland"}]},{"given":"Joana","family":"Resende","sequence":"additional","affiliation":[{"name":"Cef.up, Economics Department University of Porto Porto Portugal"}]}],"member":"311","published-online":{"date-parts":[[2019,11,11]]},"reference":[{"key":"e_1_2_9_2_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.jet.2015.01.001"},{"key":"e_1_2_9_3_1","doi-asserted-by":"publisher","DOI":"10.1006\/game.1996.0061"},{"key":"e_1_2_9_4_1","doi-asserted-by":"publisher","DOI":"10.1016\/S0167-7187(00)00071-0"},{"key":"e_1_2_9_5_1","doi-asserted-by":"publisher","DOI":"10.1016\/S0899-8256(02)00541-9"},{"key":"e_1_2_9_6_1","doi-asserted-by":"publisher","DOI":"10.1111\/jpet.12199"},{"key":"e_1_2_9_7_1","doi-asserted-by":"publisher","DOI":"10.1006\/game.1999.0734"},{"key":"e_1_2_9_8_1","first-page":"641","article-title":"Company\u2010scientist locational links: The case of biotechnology","volume":"86","author":"Audretsch D. B.","year":"1996","journal-title":"American Economic Review"},{"key":"e_1_2_9_9_1","first-page":"1","article-title":"R&D\u2010hindering collusion","volume":"10","author":"Bacchiega E.","year":"2010","journal-title":"The BE Journal of Economic Analysis & Policy"},{"key":"e_1_2_9_10_1","first-page":"429","article-title":"Interindustry R&D spillovers, rates of return, and production in high\u2010tech industries","volume":"78","author":"Bernstein J.","year":"1988","journal-title":"American Economic Review"},{"key":"e_1_2_9_11_1","doi-asserted-by":"crossref","unstructured":"Boyarchenko S.(2019). Super\u2010 and submodularity of stopping games with random observations.Economic Theory https:\/\/doi.org\/10.1007\/s00199\u2010019\u201001198\u20104 to appear.","DOI":"10.1007\/s00199-019-01198-4"},{"key":"e_1_2_9_12_1","doi-asserted-by":"publisher","DOI":"10.1111\/jpet.12381"},{"key":"e_1_2_9_13_1","first-page":"225","article-title":"Strategic commitment with R&D: The symmetric case, The Bell","volume":"14","author":"Brander J. A.","year":"1983","journal-title":"Journal of Economics"},{"key":"e_1_2_9_14_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.mathsocsci.2013.05.004"},{"key":"e_1_2_9_15_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.1050.0470"},{"key":"e_1_2_9_16_1","doi-asserted-by":"publisher","DOI":"10.1007\/s00199-014-0811-5"},{"key":"e_1_2_9_17_1","doi-asserted-by":"publisher","DOI":"10.1111\/jpet.12397"},{"key":"e_1_2_9_18_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.ijindorg.2017.03.004"},{"key":"e_1_2_9_19_1","doi-asserted-by":"publisher","DOI":"10.2307\/2233763"},{"key":"e_1_2_9_20_1","doi-asserted-by":"publisher","DOI":"10.1111\/jpet.12280"},{"key":"e_1_2_9_21_1","first-page":"1133","article-title":"Cooperative and noncooperative R&D in duopoly with spillovers","volume":"78","author":"d'Aspremont C.","year":"1988","journal-title":"American Economic Review"},{"key":"e_1_2_9_22_1","first-page":"641","article-title":"Erratum","volume":"80","author":"d'Aspremont C.","year":"1990","journal-title":"American Economic Review"},{"key":"e_1_2_9_23_1","doi-asserted-by":"publisher","DOI":"10.1111\/jpet.12277"},{"key":"e_1_2_9_24_1","doi-asserted-by":"publisher","DOI":"10.1007\/s00199-017-1077-5"},{"key":"e_1_2_9_25_1","first-page":"52","volume-title":"Handbook of the Economics of Innovation and Technological Change","author":"Griliches Z.","year":"1995"},{"key":"e_1_2_9_26_1","doi-asserted-by":"publisher","DOI":"10.1007\/BF01234404"},{"key":"e_1_2_9_27_1","doi-asserted-by":"publisher","DOI":"10.1007\/s00712-009-0085-8"},{"key":"e_1_2_9_28_1","doi-asserted-by":"publisher","DOI":"10.1111\/j.1467-9957.2006.00481.x"},{"key":"e_1_2_9_29_1","first-page":"1293","article-title":"Research joint ventures and R&D cartels","volume":"82","author":"Kamien M.","year":"1992","journal-title":"American Economic Review"},{"key":"e_1_2_9_30_1","doi-asserted-by":"publisher","DOI":"10.2307\/2555479"},{"key":"e_1_2_9_31_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.mathsocsci.2006.06.004"},{"key":"e_1_2_9_32_1","doi-asserted-by":"publisher","DOI":"10.1007\/s007120200000"},{"key":"e_1_2_9_33_1","doi-asserted-by":"publisher","DOI":"10.1287\/mnsc.2014.2140"},{"key":"e_1_2_9_34_1","doi-asserted-by":"publisher","DOI":"10.1111\/jpet.12165"},{"key":"e_1_2_9_35_1","doi-asserted-by":"publisher","DOI":"10.1111\/jpet.12400"},{"key":"e_1_2_9_36_1","doi-asserted-by":"publisher","DOI":"10.1111\/jpet.12332"},{"key":"e_1_2_9_37_1","doi-asserted-by":"publisher","DOI":"10.1023\/A:1007732218120"},{"key":"e_1_2_9_38_1","doi-asserted-by":"publisher","DOI":"10.1016\/0022-0531(69)90025-8"},{"key":"e_1_2_9_39_1","doi-asserted-by":"publisher","DOI":"10.1016\/S0167-7187(96)01046-6"},{"key":"e_1_2_9_40_1","doi-asserted-by":"publisher","DOI":"10.1257\/aer.89.3.585"},{"key":"e_1_2_9_41_1","volume-title":"Socialism, capitalism and democracy","author":"Schumpeter J. A.","year":"1943"},{"key":"e_1_2_9_42_1","doi-asserted-by":"publisher","DOI":"10.1007\/s10436-016-0290-8"},{"key":"e_1_2_9_43_1","doi-asserted-by":"publisher","DOI":"10.1111\/1468-5876.00108"},{"key":"e_1_2_9_44_1","doi-asserted-by":"publisher","DOI":"10.2307\/1911463"},{"key":"e_1_2_9_45_1","doi-asserted-by":"publisher","DOI":"10.2307\/2297771"},{"key":"e_1_2_9_46_1","first-page":"1307","article-title":"Cooperative and Noncooperative R&D in an Oligopoly with Spillovers","volume":"82","author":"Suzumura K.","year":"1992","journal-title":"The American Economic Review"},{"key":"e_1_2_9_47_1","doi-asserted-by":"publisher","DOI":"10.1111\/j.1467-9957.2010.02185.x"},{"key":"e_1_2_9_48_1","doi-asserted-by":"publisher","DOI":"10.1016\/j.jebo.2006.04.007"},{"key":"e_1_2_9_49_1","doi-asserted-by":"publisher","DOI":"10.1111\/j.1467-6451.2008.00356.x"}],"container-title":["Journal of Public Economic Theory"],"original-title":[],"language":"en","link":[{"URL":"https:\/\/onlinelibrary.wiley.com\/doi\/pdf\/10.1111\/jpet.12411","content-type":"application\/pdf","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/onlinelibrary.wiley.com\/doi\/full-xml\/10.1111\/jpet.12411","content-type":"application\/xml","content-version":"vor","intended-application":"text-mining"},{"URL":"https:\/\/onlinelibrary.wiley.com\/doi\/pdf\/10.1111\/jpet.12411","content-type":"unspecified","content-version":"vor","intended-application":"similarity-checking"}],"deposited":{"date-parts":[[2023,9,8]],"date-time":"2023-09-08T10:59:19Z","timestamp":1694170759000},"score":1,"resource":{"primary":{"URL":"https:\/\/onlinelibrary.wiley.com\/doi\/10.1111\/jpet.12411"}},"subtitle":[],"short-title":[],"issued":{"date-parts":[[2019,11,11]]},"references-count":48,"journal-issue":{"issue":"6","published-print":{"date-parts":[[2019,12]]}},"alternative-id":["10.1111\/jpet.12411"],"URL":"https:\/\/doi.org\/10.1111\/jpet.12411","archive":["Portico"],"relation":{},"ISSN":["1097-3923","1467-9779"],"issn-type":[{"value":"1097-3923","type":"print"},{"value":"1467-9779","type":"electronic"}],"subject":[],"published":{"date-parts":[[2019,11,11]]},"assertion":[{"value":"2019-07-16","order":0,"name":"received","label":"Received","group":{"name":"publication_history","label":"Publication History"}},{"value":"2019-10-22","order":1,"name":"accepted","label":"Accepted","group":{"name":"publication_history","label":"Publication History"}},{"value":"2019-11-11","order":2,"name":"published","label":"Published","group":{"name":"publication_history","label":"Publication History"}}]}}