Why are governmental R&D and private R&D complements? (research and development).

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Dennis P. Leyden, Associate Professor (Creator)
Albert N. Link, Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: It is well known that governmental R&D and private R&D have complementary relationship. However, no previous study has provided an explanation for why that complementary relationship exists. This paper argues that infratechnology is the critical link between governmental and private R&D and that the observed complementarity is the result of technical complementarity at the production level between funding, infratechnology, and knowledge sharing. A theoretical framework based on this argument is developed and examined empirically for supporting evidence. Evidence of technical complementarity is found as well as evidence that governmental R&D stimulates the sharing of knowledge.

Additional Information

Publication
Applied Economics, October 1991, 23(10):1673-1681.
Language: English
Date: 1991
Keywords
Public sector, Private sector, Research and development, Complimentary