Scientific and Commercial Incentives in R&D: Research versus Development

An earlier version of this paper was circulated under the title “Commercial Incentives in Academia.” We are grateful to David Pérez-Castrillo, Reinhilde Veugelers, the coeditor and two referees for valuable discussions and helpful comments. We have also benefited from the comments of seminar participants at the Universities Autonoma de Barcelona, Padova and Porto and at the JEI (Barcelona, 2006) EEA (Budapest, 2007), and ASSET (Florencia, 2008). Financial support from Ministerio de Ciencia y Tecnología (SEJ2006-00538), Consolider-Ingenio 2010 (CSD 2006-00016), Barcelona GSE Research Network and from the Government of Catalonia (2005SGR00836) is gratefully acknowledged.