Research by Not-for-Profit Enterprises
The Journal of Technology Transfer, vol. 29, no. 2, pp. 211-216
Posted: 6 Apr 2016
Date Written: 2004
This paper focuses on the research behavior of nonprofit firms. In particular, we model process innovation and compare equilibrium research spending under alternate objectives to outcomes under profit-maximization. Do profit-maximizing organizations spend more on research than nonprofit firms? We find that the nonprofit research spending exceeds the profit-maximizing levels. The ranking between nonprofit firms and the social optima, however, is less clear. Policy implications are discussed.
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