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Brief introduction to four papers on the economy of research published in this issue of the Transactions. The papers were originally presented in a workshop on the economy of research at Bocconi University, October 5-6, 2017. Keywords: Economy of Research, Cornelis de Waal, Susan Haack, Charles S. Peirce, Claudine Tiercelin, James Wible., In some of his philosophical and scientific works Charles S. Peirce (1839-1914) emphasized the economic constraints put upon scientific research. The process of generation, selection and testing of hypotheses, as [...]

Using an endogenous growth model in an open economy, we study the impact of minimum wages on growth for an innovator country. We state that a minimum wage shifts efforts from production to R&D, but only in an open economy. Thus, it speeds up long-run growth in proportional to exports. Calibrations suggest the growth surplus can be significant. An empirical study on 11 OECD countries illustrates these results. The impact on welfare is ambiguous because the minimum wage induces unemployment. However, we show that in an open economy, a minimum wage associated with unemployment benefits can Pareto dominate laissez-faire. JEL classification: E1; F43; J31 Keywords: Minimum wage; Endogenous growth; Welfare; Exports

Byline: Jesus P. Bonilla (1) Keywords: economics of science; empirical progress; epistemic utility; research programmes; scientific progress; theoretical progress; verisimilitude methodonomics Abstract: Some peculiarities of the evaluation of theorieswithin scientific research programmes (SRPs) and of theassessing of rival SRPs are described assuming that scientiststry to maximise an `epistemic utility function' under economicand institutional constraints. Special attention is given toLakatos' concepts of `empirical progress' and `theoreticalprogress'. A notion of `empirical verisimilitude' is defendedas an appropriate utility function. The neologism'methodonomics' is applied to this kind of studies. Author Affiliation: (1) Departamento de Logica y Filosofia de la CienciaFacultad de Filosofia, U.N.E.D., 28040, Madrid, Spain Article History: Registration Date: 30/09/2004

An endogenous growth model with long waves of growth, underlining the distinction between science and technology, is constructed. Scientific progress accelerates the rate of technological progress, but diminishing returns to technological research decelerates it. This process repeats itself with endogenous clustering of innovations. We show that higher trend (long-run) growth is associated with more frequent waves of economic activity. Moreover, we identify a trade-off between actual and trend growth rates when technological research activities are subsidized.

Issues concerning the relationship between information corporate research and development (R&D) departments have access to and the incidence of insider trading are examined. Topics include the conclusion that insider trading gains in firms with R&D departments are higher than those without R&D, that transactions occur when R&D budgets fluctuate, thatnd R&D departments contribute to information asymmetry between managers and investors.

A study was conducted to analyze how financial institutions influence technological innovation and affect growth. The popularity of external financing as a medium to harden budget constraints was examined. The functions supported by financial institutions in research and development was then discussed. Results indicated that external financing is high in pharmaceutical, electronics and computer industries, especially when companies are young.

Research was conducted to determine the reasons why referees for journals are often paid nothing for their work. A simple model that illustrates how monetary payments, which can motivate referee performance, are not used by editors. The model is based on the interaction between the potential referee and the editor-publisher of a journal. Results indicate that a concern for quality leads to the failure of both editors and referees to internalize fully the effects of their choices on others.

Public firms invest more in research and development (R & D) than private firms under a mixed R & D duopoly wherein product introduction is governed by uncertainty and easy imitation. Private firms manifest less R & D investment with respect to a private duopoly while public firms concurrently invest more in R & D. Moreover, in a mixed duopoly, private firms underinvest in R & D while public firms overinvest. Nonetheless, private and mixed duopolies cannot be compared explicitly in terms of social welfare.

This paper first reviews trends in the recent evolution of investment in national agricultural research systems. It then synthesizes the major elements of an emerging paradigm for viewing the future evolution of research systems. This paradigm has arisen in response to the funding crisis in public research organizations in the 1990s, and the declining capacity of many of these organizations. Key elements of this new paradigm are: a pluralistic institutional structure, a growing role for the private sector, new mechanisms for research funding, improved efficiency and effectiveness of public research organizations, and strengthening of global scientific links. Key words - agricultural research, institutional change, private sector

Research and development (R and D) concerning preventive goods and services continues to experience underinvestment coming from the government and from the private sector. Underinvestment results due to efforts of each countries to free-ride off research conducted in other places. Lack of political support and existence of several financially constrained R and D companies also contribute to underinvestment.

Industrial and academic research results in job creation through geographic spillovers of technology. This is seen in studies of businesses incubated by US and UK universities as well as a ranking of high-technology employment in 22 metropolitan statistical areas in the US. These showed that high-technology employees earn higher-than-average wages and that high-technology employment increases by eight percent each time university research is doubled.

Mexico's Free Trade Agreement with the US may be responsible for fostering research in Mexico by making it easier to import equipment from North America. The Mexican research establishments hope to recruit technocrats from Central Europe and Russia to overcome the shortage of qualified scientists and engineers. Despite the recent assassination of a presidential candidate, the improvement of Mexico's science may continue.

Inventors who have strong career patent histories have a higher probability of being linked to organized research, according to a study using a model that implies there is a greater incentive for the most inventive to become involved in organized research. The study uses the hypothesis that it is difficult to make a profit from basic knowledge, and this is an incentive for researchers to set up such organizations. The contractual choice of researchers thus has an impact on the amount of research done.

A study was conducted to show that Western European regions supporting higher resources to research and development support greater economic development. The influence of social conditions on the formation of 'innovation prone' and 'innovation averse' societies was also examined. Results indicated a positive correlation between the amount of regional resources allocated to research and development and regional economic growth in Western Europe.

Academic institutions can be made beneficial to the biotechnology industry through the transfer of information, technical expertise, materials and potential products. Commercialization of research is very important not only for the inventors, but also for the university and the industry. The universities, to be more actively involved in this process, should employ expert patent agents, who will be superior to university administrators in the area of technological transfer, will educate academicians on various ways of patenting and commercialization and help file preliminary patent applications.