Guaranteed Demand and Corporate R&D

Published Online:https://doi.org/10.1287/mnsc.2023.00087

References

  • AAAS (2022) Historical trends in federal R&D: National R&D by funder, 1953-2020. Accessed December 6, 2021, https://www.aaas.org/programs/r-d-budget-and-policy/historical-trends-federal-rd.Google Scholar
  • Adams JD, Chiang EP, Jensen JL (2003) The influence of federal laboratory R&D on industrial research. Rev. Econom. Statist. 85(4):1003–1020.CrossrefGoogle Scholar
  • Arora A, Belenzon S, Patacconi A (2018) The decline of science in corporate R&D. Strategic Management J. 39(1):3–32.CrossrefGoogle Scholar
  • Arora A, Belenzon S, Sheer L (2021a) Knowledge spillovers and corporate investment in scientific research. Amer. Econom. Rev. 111(3):871–898.CrossrefGoogle Scholar
  • Arora A, Belenzon S, Sheer L (2021b) Matching patents to Compustat firms, 1980-2015: Dynamic reassignment, name changes, and ownership structures. Res. Policy 50(5):104217.CrossrefGoogle Scholar
  • Arora A, Belenzon S, Cioaca L, Sheer L, Zhang H (2023) The effect of public science on corporate R&D. NBER Working Paper No. 31701, National Bureau of Economic Research, Cambridge, MA.Google Scholar
  • Arve M, Martimort D (2016) Dynamic procurement under uncertainty: Optimal design and implications for incomplete contracts. Amer. Econom. Rev. 106(11):3238–3274.CrossrefGoogle Scholar
  • Azoulay P, Graff Zivin JS, Li D, Sampat BN (2019) Public R&D investments and private-sector patenting: Evidence from NIH funding rules. Rev. Econom. Stud. 86(1):117–152.CrossrefGoogle Scholar
  • Bandiera O, Prat A, Valletti T (2009) Active and passive waste in government spending: Evidence from a policy experiment. Amer. Econom. Rev. 99(4):1278–1308.CrossrefGoogle Scholar
  • Bartik TJ (1991) Who Benefits from State and Local Economic Development Policies? (WE Upjohn Institute for Employment Research, Kalamazoo, MI).CrossrefGoogle Scholar
  • Bhattacharya V (2021) An empirical model of R&D procurement contests: An analysis of the DOD SBIR program. Econometrica 89(5):2189–2224.CrossrefGoogle Scholar
  • Bloom N, Griffith R, Van Reenen J (2002) Do R&D tax credits work? Evidence from a panel of countries 1979–1997. J. Public Econom. 85(1):1–31.CrossrefGoogle Scholar
  • Bloom N, Van Reenen J, Williams H (2019) A toolkit of policies to promote innovation. J. Econom. Perspectives 33(3):163–184.CrossrefGoogle Scholar
  • Bloom N, Jones CI, Van Reenen J, Webb M (2020) Are ideas getting harder to find? Amer. Econom. Rev. 110(4):1104–1144.CrossrefGoogle Scholar
  • Callaway B, Sant’Anna PH (2021) Difference-in-differences with multiple time periods. J. Econometrics 225(2):200–230.CrossrefGoogle Scholar
  • Carril R, Duggan M (2020) The impact of industry consolidation on government procurement: Evidence from Department of Defense contracting. J. Public Econom. 184(2020):104141.CrossrefGoogle Scholar
  • Che Y-K, Gale I (2003) Optimal design of research contests. Amer. Econom. Rev. 93(3):646–671.CrossrefGoogle Scholar
  • Che Y-K, Iossa E, Rey P (2021) Prizes versus contracts as incentives for innovation. Rev. Econom. Stud. 88(5):2149–2178.CrossrefGoogle Scholar
  • Cohen WM, Nelson RR, Walsh JP (2002) Links and impacts: The influence of public research on industrial R&D. Management Sci. 48(1):1–23.LinkGoogle Scholar
  • David PA, Hall BH, Toole AA (2000) Is public R&D a complement or substitute for private R&D? A review of the econometric evidence. Res. Policy 29(4–5):497–529.CrossrefGoogle Scholar
  • Decarolis F (2014) Awarding price, contract performance, and bids screening: Evidence from procurement auctions. Amer. Econom. J. Appl. Econom. 6(1):108–132.CrossrefGoogle Scholar
  • Dimos C, Pugh G (2016) The effectiveness of R&D subsidies: A meta-regression analysis of the evaluation literature. Res. Policy 45(4):797–815.CrossrefGoogle Scholar
  • Dugoua E, Gerarden T, Myers K, Pless J (2022) Creating and steering innovators with supply versus demand policies. Unpublished manuscript, viewed as part of a conference presentation in 2022.Google Scholar
  • Edler J, Georghiou L (2007) Public procurement and innovation—Resurrecting the demand side. Res. Policy 36(7):949–963.CrossrefGoogle Scholar
  • Financial Accounting Standards Board (2009) Accounting standards codification. Accessed March 14, 2022, https://asc.fasb.org/730.Google Scholar
  • Fini R, Perkmann M, Kenney M, Maki KM (2023) Are public subsidies effective for university spinoffs? Evidence from SBIR awards in the University of California system. Res. Policy 52(1):104662.CrossrefGoogle Scholar
  • Griliches Z (1958) Research costs and social returns: Hybrid corn and related innovations. J. Political Econom. 66(5):419–431.CrossrefGoogle Scholar
  • Hart O, Moore J (1988) Incomplete contracts and renegotiation. Econometrica 56(4):755–785.CrossrefGoogle Scholar
  • Hart O, Moore J (1999) Foundations of incomplete contracts. Rev. Econom. Stud. 66(1):115–138.CrossrefGoogle Scholar
  • Howell ST (2017) Financing innovation: Evidence from R&D grants. Amer. Econom. Rev. 107(4):1136–1164.CrossrefGoogle Scholar
  • Howell ST, Rathje J, Van Reenen J, Wong JW (2022) Opening up military innovation: Effects of bottom-up reforms to U.S. defense research. Accessed March 25, 2023, https://www.cato.org/research-briefs-economic-policy/opening-military-innovation-effects-bottom-reforms-us-defense.Google Scholar
  • Kang K, Miller RA (2022) Winning by default: Why is there so little competition in government procurement? Rev. Econom. Stud. 89(3):1495–1556.CrossrefGoogle Scholar
  • Knott AM, Josephson B, Lee J-Y (2023) Are federal contractors less innovative? Preprint, submitted December 23, https://doi.org/10.2139/ssrn.4528211.Google Scholar
  • Kremer M, Levin J, Snyder CM (2022) Designing advance market commitments for new vaccines. Management Sci. 68(7):4786–4814.LinkGoogle Scholar
  • Lanahan L, Joshi AM, Johnson E (2021) Do public R&D subsidies produce jobs? Evidence from the SBIR/STTR program. Res. Policy 50(7):104286.CrossrefGoogle Scholar
  • Lerner J (2000) The government as venture capitalist: The long-run impact of the SBIR program. J. Private Equity 3(2):55–78.CrossrefGoogle Scholar
  • Lichtenberg FR (1988) The private R and D investment response to federal design and technical competitions. Amer. Econom. Rev. 78(3):550–559.Google Scholar
  • Liebman JB, Mahoney N (2017) Do expiring budgets lead to wasteful year-end spending? Evidence from federal procurement. Amer. Econom. Rev. 107(11):3510–3549.CrossrefGoogle Scholar
  • Link AN (1982) An analysis of the composition of R&D spending. Southern Econom. J. 49(2):342–349.CrossrefGoogle Scholar
  • Manuel KM (2011) Competition in federal contracting: An overview of the legal requirements. Accessed February 25, 2021, https://digital.library.unt.edu/ark:/67531/metadc31464/.Google Scholar
  • Moretti E, Steinwender C, Van Reenen J (2025) The intellectual spoils of war? Defense R&D, productivity, and international spillovers. Rev. Econom. Statist. 107(1):14–27.CrossrefGoogle Scholar
  • Mowery DC (2010) Military R&D and innovation. Hall BH, Rosenberg N, eds. Handbook of the Economics of Innovation, vol. 2 (Elsevier, Amsterdam), 1219–1256.Google Scholar
  • Mowery DC (2012) Defense-related R&D as a model for “grand challenges” technology policies. Res. Policy 41(10):1703–1715.CrossrefGoogle Scholar
  • Myers KR, Lanahan L (2022) Estimating spillovers from publicly funded R&D: Evidence from the US Department of Energy. Amer. Econom. Rev. 112(7):2393–2423.CrossrefGoogle Scholar
  • NCSES (2020) National patterns of R&D resources: 2017–18 data update. Accessed August 23, 2021, https://ncses.nsf.gov/pubs/nsf20307.Google Scholar
  • OECD (2017) Government at a glance 2017. Accessed February 18, 2024, https://www.oecd-ilibrary.org/content/publication/gov_glance-2017-en.Google Scholar
  • OECD (2022) OECD patent quality indicators database. Accessed March 23, 2022, https://www.oecd.org/sti/inno/oecd-patent-quality-indicators.htm.Google Scholar
  • Packalen M, Bhattacharya J (2020) NIH funding and the pursuit of edge science. Proc. Natl. Acad. Sci. USA 117(22):12011–12016.CrossrefGoogle Scholar
  • Peters HM (2021) Defense primer: U.S. defense industrial base. Accessed February 8, 2021, https://fas.org/sgp/crs/natsec/IF10548.pdf.Google Scholar
  • Pillai S, Goldfarb B, Kirsch D, Kim S, Starr E (2024) From hypothesis testing towards inference to best explanation: A PEEBI testimonial structure for abductive studies in strategy. Preprint, submitted February 11, 2025, https://doi.org/10.2139/ssrn.Google Scholar
  • Rathje JM (2019) Essays on public funding for private innovation. PhD dissertation, Stanford University, Stanford, CA.Google Scholar
  • Riordan MH, Sappington DE (1989) Second sourcing. RAND J. Econom. 20(1):41–58.CrossrefGoogle Scholar
  • Rogerson WP (1989) Profit regulation of defense contractors and prizes for innovation. J. Political Econom. 97(6):1284–1305.CrossrefGoogle Scholar
  • Slavtchev V, Wiederhold S (2016) Does the technological content of government demand matter for private R&D? Evidence from U.S. states. Amer. Econom. J. Macroeconom. 8(2):45–84.CrossrefGoogle Scholar
  • Squicciarini M, Dernis H, Criscuolo C (2013) Measuring Patent Quality: Indicators of Technological and Economic Value (OECD Publishing, Paris).Google Scholar
  • Sun L, Abraham S (2021) Estimating dynamic treatment effects in event studies with heterogeneous treatment effects. J. Econometrics 225(2):175–199.CrossrefGoogle Scholar
  • U.S. Bureau of Economic Analysis (2021) Gross domestic product: Implicit price deflator [GDPDEF]. Accessed May 9, 2021, https://fred.stlouisfed.org/series/GDPDEF.Google Scholar
  • Wallsten SJ (2000) The effects of government-industry R&D programs on private R&D: The case of the Small Business Innovation Research program. RAND J. Econom. 31(1):82–100.CrossrefGoogle Scholar
  • Weiss L (2014) America Inc.? Innovation and Enterprise in the National Security State (Cornell University Press, Ithaca, NY).Google Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.