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The Public and Private Sectors in the Process of Innovation: Theory and Evidence from the Mouse Genetics Revolution

Author(s)
Aghion, Philippe; Dewatripoint, Mathias; Kolev, Julian; Murray, Fiona E.; Stern, Scott
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Abstract
How do public and private researchers respond to a breakthrough inducing new research opportunities? Modeling the process of step-by-step innovation as a control rights problem, this paper evaluates comparative research strategies of public versus private researchers as they respond to a common breakthrough that induces many potential follow-on research paths. While the opportunity may be common to all researchers, differences in the degree of freedom afforded researchers results in the endogenous sorting of research projects; as a result, public and private researchers will produce distinctive research outputs, as measured by publications and patents.
Date issued
2010-05
URI
http://hdl.handle.net/1721.1/69103
Department
Sloan School of Management
Journal
American Economic Review
Publisher
American Economic Association
Citation
Aghion, Philippe et al. “The Public and Private Sectors in the Process of Innovation: Theory and Evidence from the Mouse Genetics Revolution.” American Economic Review 100.2 (2010): 153-158. © 2010 The American Economic Association
Version: Final published version
ISSN
0002-8282
1944-7981

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