R&D; Spillovers and the Case for Industrial Policy in an Open Economy.
In this paper we consider the case for subsidies towards firms which generate R&D; spillovers in open economies. We show that many expected results are overturned in the presence of strategic behaviour by firms. Local R&D; spillovers to other domestic firms may justify an R&D...
| Main Authors: | , |
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| Format: | Working paper |
| Language: | English |
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Centre for Economic Performance, LSE
1997
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| _version_ | 1797097715647119360 |
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| author | Leahy, D Neary, J |
| author_facet | Leahy, D Neary, J |
| author_sort | Leahy, D |
| collection | OXFORD |
| description | In this paper we consider the case for subsidies towards firms which generate R&D; spillovers in open economies. We show that many expected results are overturned in the presence of strategic behaviour by firms. Local R&D; spillovers to other domestic firms may justify an R&D; tax rather than a subsidy; R&D; cooperation by local firms over-internalises the externality and also justifies an R&D; tax; and international spillovers which benefit foreign firms may justify a subsidy, even though the government cares only about the profits of home firms. |
| first_indexed | 2024-03-07T04:59:28Z |
| format | Working paper |
| id | oxford-uuid:d7c7828f-8821-49c5-94fc-6afbcc547811 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T04:59:28Z |
| publishDate | 1997 |
| publisher | Centre for Economic Performance, LSE |
| record_format | dspace |
| spelling | oxford-uuid:d7c7828f-8821-49c5-94fc-6afbcc5478112022-03-27T08:43:28ZR&D; Spillovers and the Case for Industrial Policy in an Open Economy.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:d7c7828f-8821-49c5-94fc-6afbcc547811EnglishDepartment of Economics - ePrintsCentre for Economic Performance, LSE1997Leahy, DNeary, JIn this paper we consider the case for subsidies towards firms which generate R&D; spillovers in open economies. We show that many expected results are overturned in the presence of strategic behaviour by firms. Local R&D; spillovers to other domestic firms may justify an R&D; tax rather than a subsidy; R&D; cooperation by local firms over-internalises the externality and also justifies an R&D; tax; and international spillovers which benefit foreign firms may justify a subsidy, even though the government cares only about the profits of home firms. |
| spellingShingle | Leahy, D Neary, J R&D; Spillovers and the Case for Industrial Policy in an Open Economy. |
| title | R&D; Spillovers and the Case for Industrial Policy in an Open Economy. |
| title_full | R&D; Spillovers and the Case for Industrial Policy in an Open Economy. |
| title_fullStr | R&D; Spillovers and the Case for Industrial Policy in an Open Economy. |
| title_full_unstemmed | R&D; Spillovers and the Case for Industrial Policy in an Open Economy. |
| title_short | R&D; Spillovers and the Case for Industrial Policy in an Open Economy. |
| title_sort | r amp d spillovers and the case for industrial policy in an open economy |
| work_keys_str_mv | AT leahyd rampdspilloversandthecaseforindustrialpolicyinanopeneconomy AT nearyj rampdspilloversandthecaseforindustrialpolicyinanopeneconomy |