Template-type: ReDif-Paper 1.0
Author-Name: Straathof,Bas
Author-Name: Zon,Adriaan,van
Author-workplace-name: MERIT
Title: Research in energy conversion technologies: Policy instruments and uncertainty 
Abstract: In this paper, the effects of uncertainty and of various policy instruments on the lengthand attractiveness of private research projects are studied. Research expenditure can beregained from quasi-rents that are earned by exploiting patents on the fruits of research.The accumulation of knowledge is modeled as a Poisson process. Within the context ofthe model, we show that firms shorten the duration of research projects when uncertaintyin knowledge accumulation increases or when, for example, the validity of patents isprolonged. The underlying mechanisms are due to Jensen™s Inequality and a real-optioneffect. Furthermore, we develop a smooth pasting condition for a class of Poissonprocesses.
Keywords: economics of technology ; 
Series: Research Memoranda
Creation-Date: 2002
Number: 005
File-URL: http://arnop.unimaas.nl/show.cgi?fid=224
File-Format: application/pdf
File-Size: 194742
Handle: RePEc:unm:umamer:2002005