Cover: Social Insurance and the Design of Innovation Incentives

Social Insurance and the Design of Innovation Incentives

Published in: Economics Letters, v. 85, no. 1, Oct. 2004, p. 57-61

Posted on on January 01, 2004

by Darius N. Lakdawalla, Neeraj Sood

The authors consider the insurance aspects of research policy. Patents or rewards have an advantage over research subsidies when a new invention replaces an existing good at lower cost. Research subsidies have an advantage when inventions spawn an entirely new product.

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