In this paper we formulate a model that extends the traditional theoretical literature on the optimal management of an R&D project by emphasizing the model’s empirical and policy implications. We solve the firm’s dynamic problem and use the resulting optimal R&D policy to assess the role of subsidies aimed at stimulating R&D activities.<\/p>\n
The theoretical framework illustrates that the sign and size of the “additionality effect” the change in the amount of company-financed R&D caused by the subsidy depends on the model’s parameters and distributional assumptions. It is, therefore, an empirical matter. The model also provides a framework for interpreting anew the empirical association between R&D expenditures and productivity growth found in many micro-level productivity regressions.<\/p>\n","protected":false},"excerpt":{"rendered":"
In this paper we formulate a model that extends the traditional theoretical literature on the optimal management of an R&D project by emphasizing the model’s empirical and policy implications. We solve the firm’s dynamic problem and use the resulting optimal R&D policy to assess the role of subsidies aimed at stimulating R&D activities. The theoretical […]<\/p>\n","protected":false},"author":1,"featured_media":10073,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","footnotes":""},"categories":[28],"tags":[79,40,56,1461,42,1614],"post_category":[],"class_list":["post-37054","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-report","tag-79","tag-economy","tag-research-and-development","tag-science","tag-science-and-technology","tag-technology"],"acf":[],"yoast_head":"\n