A Homogeneous Industry Model of Resource Allocation to Basic Research and Its Policy Implications
构建了一个 homogeneous 行业模型，分析企业风险厌恶程度和行业企业数量对基础研究资源分配的影响，质疑了政府支持基础研究的若干流行观点。
In a recent paper we showed that unaided industry allocation to basic (inappropriable) research is suboptimal and that in stimulating this allocation, provision of government seed money is generally counterproductive, while the provision of matching subsidies is not cost-efficient. Here we consider a special case of the model developed in the earlier paper (i.e., we now consider a homogeneous industry) and investigate the effects of several relevant factors upon an industry’s allocation of resources to basic research. An extensive numerical example is presented that helps to verify and to interpret the model in realistic terms. Our findings question the validity of a number of popular beliefs about the need for government support of basic research in various types of industries. For example, contrary to popular belief, the greater the risk aversion displayed by member firms in an industry, the lesser may be the need for government support of its basic research. Also, the larger the number of firms in an industry the greater may be the need for government support of that industry's basic research.