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Sequeira, T. N. & Ferreira-Lopes, A. (2013). Social capital and investment in R&D: new externalities. Journal of Business Economics and Management. 14 (1), 77-97
T. M. Sequeira and A. M. Lopes, "Social capital and investment in R&D: new externalities", in Journal of Business Economics and Management, vol. 14, no. 1, pp. 77-97, 2013
@article{sequeira2013_1732208334541, author = "Sequeira, T. N. and Ferreira-Lopes, A.", title = "Social capital and investment in R&D: new externalities", journal = "Journal of Business Economics and Management", year = "2013", volume = "14", number = "1", doi = "10.3846/16111699.2011.638667", pages = "77-97", url = "http://www.tandfonline.com/doi/abs/10.3846/16111699.2011.638667" }
TY - JOUR TI - Social capital and investment in R&D: new externalities T2 - Journal of Business Economics and Management VL - 14 IS - 1 AU - Sequeira, T. N. AU - Ferreira-Lopes, A. PY - 2013 SP - 77-97 SN - 1611-1699 DO - 10.3846/16111699.2011.638667 UR - http://www.tandfonline.com/doi/abs/10.3846/16111699.2011.638667 AB - We introduce social capital in an endogenous growth model with physical capital, human capital, and research and development (R&D), and we compare the market with the efficient solutions. As social capital is not tradable in the market and since it favours research networks, it introduces new externalities in this framework. These externalities induce the market to invest less in social capital than would a social planner and decrease the tendency to underinvestment in R&D. We quantify the distortions in the model. In some conditions, the new distortions are strong enough to overcome the usual result of underinvestment in R&D. ER -