Semi-Public Competitions

摘要: The process of innovation is driven by two main factors: new inventions and institutions supporting the transformation into marketable innovations. This paper proposes a institution, called semi-public competition, that has been neglected economic literature but exists frequently in practice. I show how competitions can mitigate dilemma arises at an early stage innovative activity specify conditions under which competition increase welfare. results suggest governments promote knowledge about mechanism refrain from direct public funding competitions.