Ch 1 - Institutions A Brief Excursion through History

Ch 1 - Institutions A Brief Excursion through History -...

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Unformatted text preview: In-house1.National laboratories2.Industries and universities (>50%)3.Location of federally funded research○Often given as intellectual property; patents and copyrights□Market advantageCompete for contracts to carry out gov't research agendasSmall Business Innovation Program (SBIR)□Receive grant fundingResearch funding for military hardware and space explorationFunding Schemes and Incentives for Private Firms○Arises from Greeks or medieval monarchiesPeer reviewArchimedes Oppenheimer WWIIMission-direct for war machines□ExamplesDirect grants in return for promised intellectual property rights□Funding w/ obligation to put resulting knowledge in public domain□Gov't funding where output can be patented□Universities and Types of Gov't FundingGov't Funding○Grants and prizes□Reward solution to needs that originate with sponsorsSponsor's needs are formalizedWhat if someone has a great idea where no reward has been posted?◊Do not tap all creativity in populationTargeted prizes□DARPA offer $1 million prize to elicit fortyfold improvement in robotic vehicles in rough terrainHarrison's clock $10 million for first private firm to carry 3 passengers to 100km w/in 2-week period►X Prize FoundationSuper efficient fridge + Whirlpool No commercial value►Demonstrating Maxwell's equation of electromagnetism was correct + HertzRSA Factoring Challenge Example:□Ex ante- set prize then innovatePatents and prizes□Offered for innovations that are not identified in advanceJudges "know it when they see it"No prespecified performance standardsBlue-sky prizes□Patronage as a prize◊George III gave astronomer Herschel £200/year for discovering UranusDaguerre and photography process (10,000 francs per annum)Example:□Ex post- innovate then set prizeAll funding are implicitly incentive schemes○Command over resources (i.e. taxing)□Ability to fund 1.Incentive to fund (widespread benefits)2.R&D/innovation necessities○"Regulatory pull"- Creating commodity standards that can only standards that can only be met w/ some new innovation○IntroductionFirst known inventorWorked for Khufu ("Cheops")□Gov't employeeBuilt pyramidsImhotep○1.1 The AncientsCh 1 - Institutions: A Brief Excursion through HistoryMonday, October 05, 20098:34 AM143 Midterm 1 Page 1Respect and reputation to wealthy individuals who devoted their time are resources to science□Culture1.Archimedes and gold crown□Greek City-states purchased research2.Ancient schools (Socrates, Plato, Aristotle)□Self-funding research institutions3....
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This note was uploaded on 11/13/2009 for the course ECON 143 taught by Professor Wright during the Fall '07 term at Berkeley.

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Ch 1 - Institutions A Brief Excursion through History -...

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