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Research spending under regulatory uncertainty

机译:监管不确定性下的研究支出

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Using a simple model this paper examines firm behavior under three types of uncertainties dealing with innovation occurrence, innovation scale, and a possible threat of regulatory action. Firms compete in the existing product market and engage in R&D in Stage I. Innovation takes place in the second stage, the successful firm achieves a monopoly and becomes aware of the scale of innovation. Regulators examine the new product and decide on possible action. Results show that increases in the probability of regulation reduce research spending as do higher regulatory taxes. These results are reversed when the regulator grants a subsidy, instead. An increase in the probability of drastic innovation increases research spending under certain conditions. The effect of market entry is unclear. Our results generally carry through when the model is extended to include only an innovation race or the nondrastic innovation is alternately regulated. Policy implications are discussed.
机译:本文使用一个简单的模型研究了在三种类型的不确定性下的企业行为,这些不确定性涉及创新发生,创新规模和监管行动的可能威胁。企业在现有产品市场中竞争,并在第一阶段从事研发。创新发生在第二阶段,成功的企业实现了垄断并意识到了创新的规模。监管机构会检查新产品并决定可能采取的措施。结果表明,增加监管可能性的可能性降低了研究支出,同时增加了较高的监管税。相反,当监管机构给予补贴时,这些结果就会相反。在某些条件下,剧烈创新的可能性增加,从而增加了研究支出。市场进入的影响尚不清楚。当将模型扩展到仅包括创新竞赛或对非重大创新进行交替监管时,我们的结果通常会保留下来。讨论了政策含义。

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