KNOWLEDGE FROM RESEARCH AS A QUASI-PUBLIC GOOD

Abstract

Knowledge is a special quasi-public good which is delivered by several types of institutions, including public and private universities. Knowledge to be produced in bigger quantities, the state should contribute with budgetary financial support as subsidies or grants to cover a part of expenses. States are supporting research from public resources, especially the basic research which enjoy a smaller interest from the private research units due its small potential to be implemented and recovered throughout price. Public co-founding of research generates problems regarding the regime of patents’ ownership because financing bodies have divergent opinion regarding the utility of research in society’s development. There are different approaches offered in solving this problem, taking into account the forms of realizing this quasi-public good, approaches based especially on different type of joint-ventures. Academic research, perceived as a very important and income generating activity, is done in a very large scale of combinations between universities and private entities. These complicated relations generates information asymmetry specific to principal-agent relations in economy. The control of information asymmetry level is important because a high level corresponds to inefficient use of funds and smaller satisfaction of general needs.Knowledge, Quasi-public goods, Information Asymmetry