The coalition of the willing: Effect of country diversity in an environmental treaty game

It is analyzed how size differences among countries affect the benefits from climate coalitions. It is shown that size differences lead to smaller coalitions and greater benefits than coalitions among identical countries. The importance of trigger strategies for supporting cooperative solutions is considered. A real world example, based on the world’s six largest emitters, is used to illustrate the implications of size differences in terms of emissions versus valuations of benefits. Climate coalitions become smaller when ranking in terms of benefits is different from ranking in terms of emissions. Three cases of benefit valuations are considered: benefits equal (i) share in world emissions, (ii) share in world GDP, and (iii) share of world population.     

Multilevel public funding for small business innovation: a review of US state SBIR match programs

US State governments invest in early-stage innovative activity as an economic development strategy. Nevertheless, attention directed at the public sector’s role in this capacity has been placed on federal policy actions overlooking the growing role of states. The primary aims of this paper are two-fold: (1) to articulate the motivations for multilevel public support for small business innovative activity, placing emphasis on state level incentives directed towards entrepreneurial activity; and (2) to empirically evaluate the State Match Phase I (SMP-I) program. The SMP-I program is a diffuse state level policy designed to complement the federal Small Business Innovation Research (SBIR) program by offering noncompetitive matching funds to the state’s successful SBIR Phase I recipients. This offers an opportunity to examine the marginal impact of public R&D given the state intervention. This paper employs a state and year fixed effects model and considers two outcome variables—SBIR Phase II success rates and SBIR Phase I application activity. To account for industrial heterogeneity, the data are stratified by the federal mission agencies. Results from the empirical analysis indicate that the state match increases the Phase II success rates for firms participating in the National Science Foundation SBIR program.