Innovation Networks and R&D Allocation
Date: Thursday, Jul 17, 2025, 16:00 ~ 17:15
Speaker: Ernest Liu (Princeton)
Location: Webinar
◈ Keynote : "Innovation Networks and R&D Allocation," with Song Ma.
◈ AEW Discussion :"Discrimination and Pre-game Communication: An Experimental Investigation," by Chien-Yu Lai, Ding-Wei Wang, and Joseph Tao-yi Wang.
◈ 발표자 : Ernest Liu (Princeton)◈ 일 시 : 2025년 7월 17일 목요일 16:00 ~ 17:15
◈ 장 소 : Webinar via WebEx
Webinar 참석을 위해 아래 링크를 통한 사전 등록이 필요합니다:
Abstract:
We study the cross-sector allocation of R&D resources in an innovation network, where one sector’s past innovations may benefit other sectors’ future innovations. We solve for the optimal R&D allocation and show that a planner valuing long-term growth should allocate more R&D toward network-central sectors, but this incentive is muted for countries receiving more foreign knowledge spillovers. We derive sufficient statistics for measuring the welfare impact of improving cross-sector R&D allocation. Empirically, we build the global innovation network based on patent citations and evaluate R&D allocative efficiency across countries. For the US, improving R&D allocation could generate 8% welfare gains.