Three essays on research and development

The impact of institutional changes and market structure on research and development (R&D) and technical progress is controversial. My dissertation investigates the determinants of R&D in the context of institutional change. The first two papers address the impact of deregulation in the US electric utility industry on R&D. The third paper investigates the linkage between patenting and different funding sources and patent office attributes.; The first paper, “Deregulation, Restructuring and Changing R&D Paradigms in the US Electric Utility Industry”, investigates the linkage between market structures and the conduct of R&D in the US electric utility industry. The primary finding of this paper is that institutional and competition factors interact in a way that suggest that the occurrence of full deregulation, coupled with effective retail competition in the market may mitigate the problem of declining R&D expenditures in the face of deregulation.; The second paper, “Powering a Green Progress: Environmental Research in the Absence of Regulatory Oversight” analyzes the impact of changing market structure on environmental R&D expenditures by IOUs in the electric utility industry. Conventional wisdom holds that increased competition would lead firms to cut back on R&D funds directed towards social goals, such as the environment. But these arguments fail to take account the threat of future environmental regulations and its influence on disciplining firms. Theory and empirical results from this paper suggest that under certain conditions, even with high monitoring costs, an environmental regulatory agency's threat of stricter future regulations will successfully stem the decrease in environmental R&D expenditures.; My third paper, “Birth of a Patent: the Role of Parents, Nursemaids and Constraints”, presents an integrated theoretical and empirical approach that models the effects of different sources of R&D funding and patent office attributes on the patenting process. The primary results are: First, the source of R&D funding as well as performer (academic, federal and industry) has a differential effect on patenting. Second, federal R&D has positive spillovers for company R&D. Third, in the short run patenting is heavily influenced by patent office attributes.