The Design of R&D Support Schemes for Industry

Melbourne Institute Working Paper No. 24/11

Date: November 2011


Russell Thomson
Elizabeth Webster


Scant discussion exists in the literature about the relative design merits of various R&D schemes and most authors treat program design as a black box. In this paper, we assess the design features of three major forms of R&D support: entitlement schemes, competitive schemes and industry R&D boards. We use a combination of evidence to comment on how well these schemes perform in terms of: firm engagement (how does the scheme recruit business interest?); project selection (what criteria are used and who selects the projects?); payment structure (how is financial support structured?) and administrative costs (what is the burden?).

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