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on Innovation |
| By: | Luca, Spinesi; Mario, Tirelli |
| Abstract: | R&D investment are an important engine of growth and development. Yet economists have often claimed underinvestment, also due to the asymmetric information between inside investors and outside investors and financiers, and the consequent capital and financial market imperfections. Some recent empirical evidence robustly supports these claims. Motivated by this evidence, we study the effects of asymmetric information and financial frictions on R&D investment within a dynamic GE economy of Shumpeterian tradition. The model and equilibrium concept we propose is rich enough to represent investment and innovation decisions, financial decisions and decisions regarding technology adoption/diffusion through patent licensing. Qualitative predictions indicate that the financial policy of the firm matters in explaining both entrepreneurial production and innovation decisions. Young R&D-intensive firms might rely more heavily on internal sources and equity than on debt financing, relatively to what would otherwise be observed in absence of frictions. These findings contribute to explain the type of financial hierarchy recently highlighted in the empirical studies. |
| Keywords: | Innovation, R&D, Shumpeterian growth, firm financial structure, asymmetric information, financial markets, general equilibrium. |
| JEL: | D5 D53 D92 O31 O33 O34 O4 |
| Date: | 2018–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86860&r=ino |
| By: | Jaravel, Xavier; Petkova, Neviana; Bell, Alex |
| Abstract: | We establish the importance of team-specific capital in the typical inventor's career. Using administrative tax and patent data for the population of US patent inventors from 1996 to 2012, we find that an inventor's premature death causes a large and long-lasting decline in their co-inventor's earnings and citation-weighted patents (–4 percent and –15 percent after 8 years, respectively). After ruling out firm disruption, network effects, and top-down spillovers as main channels, we show that the effect is driven by close-knit teams and that team-specific capital largely results from an "experience" component increasing collaboration value over time. |
| JEL: | J24 J31 M54 O31 O34 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:87653&r=ino |
| By: | Link, Albert (University of North Carolina at Greensboro, Department of Economics); Scott, John (Dartmouth College) |
| Abstract: | Science parks, also called research parks, technology parks, or technopolis infrastructures, have increased rapidly in numbers as many countries adopted the approach of bringing together in a park research-based organizations. A science park’s cluster of research and technology-based organizations is often located on or near a university campus. The juxtaposition of ongoing research of both the university and of the park tenants creates a two-way flow of knowledge; knowledge is transferred between the university and firms, and all parties develop knowledge more effectively because of their symbiotic relationship. Theory and evidence support the belief that the geographic proximity that a science park provides for the participating organizations creates a dynamic cluster that accelerates economic growth and international competitiveness through the innovation-enabling exchanges of knowledge and the transfer of technologies. The process of creating innovations is more efficient because of the agglomeration of research and technology-based firms on or near a university campus. The proximity of a park to multiple sources of knowledge provides greater opportunities for the creation and acquisition of knowledge, especially tacit knowledge, and the geographic proximity therefore reduces the search and acquisition costs for that knowledge. Understanding the mechanisms by which the innovative performance of research and technology-based organizations is increased by their geographic proximity in a science park is important for formulating public and private sector policies toward park formations because successful national innovation systems require the two-way knowledge flow, among firms in a park and between firms and universities, that is fostered by the science park infrastructure. |
| Keywords: | science park; research park; technology park; geographic proximity; technology transfer; clusters; location; innovation; knowledge spillovers; patents; regional growth and development; |
| JEL: | O31 O32 O34 R11 R12 |
| Date: | 2018–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:ris:uncgec:2018_004&r=ino |
| By: | Orsatti, Gianluca; Perruchas, François; Consoli, Davide; Quatraro, Francesco (University of Turin) |
| Abstract: | The present paper investigates whether and through which channels green public procurement (GPP) stimulates local environmental innovation capacity. To this end, we use detailed data sources on green patents and procurement expenditure at the level of US Commuting Zones for the period 2000-2011. We also check for the moderating effects of local labor market composition in the relation between green public procurement and green innovation capacity. Lastly, we exploit the richness of patent information to test for differential effects of green public procurement on different classes of green technologies. The main finding is that GPP is an important driver in explaining the growth of local green-tech stock. The positive effect of GPP is mainly driven by expenditures for procured green services and is magnified by the local presence of high shares of abstract- intensive occupations. When separately considering diverse kinds of green technologies, we do find evidence of a more pronounced effect of GPP on the growth of local knowledge stocks of mitigation technologies. |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:uto:labeco:201803&r=ino |
| By: | Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Andreas, Andreas (Jönköping International Business School (JIBS) & Centre of Excellence for Science and Innovation Studies (CESIS)); Wulandari, Febi (Jönköping International Business School (JIBS)) |
| Abstract: | Facing the challenge of climate change, innovations that imply environmental benefits create business opportunities for entrepreneurs. This paper analyzes innovation capabilities of startups in Cleantech and how the innovation outcomes of those startups develop over time. Based on the Mannheim Foundation Panel and applying propensity score matching, a cohort of 566 Cleantech startups is analyzed and compared with a control group of non-Cleantech startups. We find that startups in Cleantech have, on average, higher innovation capabilities compared with all startups. However, Cleantech startups are a heterogeneous group including ventures using common technology and those developing new technology. Our econometric evidence shows that, ceteris paribus, Cleantech startups are more likely to combine existing technology in a novel way. Finally, we find that Cleantech startups do, on average, develop more market novelties in later years compared to theirs peers. |
| Keywords: | Innovative startups; green innovations; Cleantech; capabilities; policies |
| JEL: | M13 O13 O25 O31 |
| Date: | 2018–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0467&r=ino |
| By: | Philippe Aghion; Antonin Bergeaud; Matthieu Lequien; Marc J. Melitz |
| Abstract: | This paper investigates the effect of export shocks on innovation. On the one hand a positive shock increases market size and therefore innovation incentives for all firms. On the other hand it increases competition as more firms enter the export market. This in turn reduces profits and therefore innovation incentives particularly for firms with low productivity. Overall the positive impact of the export shock on innovation is magnified for high productivity firms, whereas it may negatively affect innovation in low productivity firms. We test this prediction with patent, customs and production data covering all French manufacturing firms. To address potential endogeneity issues, we construct firm-level export proxies which respond to aggregate conditions in a firm's export destinations but are exogenous to firm-level decisions. We show that patenting robustly increases more with export demand for initially more productive firms. This effect is reversed for the least productive firms as the negative competition effect dominates. |
| JEL: | D12 F13 F14 F41 O30 O47 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:24600&r=ino |
| By: | Cho, Choongjae (Korea Institute for International Economic Policy); Song, Youngchu (Korea Institute for International Economic Policy) |
| Abstract: | This study focuses on analyzing China, India and Singapore's driving capability for the 4th IR, related national policies, plans, or strategies, etc. In addition, this study suggests implications and directions for the development of policies related to the 4th IR by the Korean government and the strengthening of cooperation with each of these three countries. In conclusion, we presents the following cooperation directions and policy tasks in respect to the three countries above. First, we need to enhance selective and strategic cooperation with China in the aspects of competition and response via the following strategies: 1) strengthening R&D projects for original technologies in new technology and industry areas, thus focusing on early commercialization and standardization; 2) developing strategies to actively utilize digitalized consumers in China and protecting domestic digital consumers and cross-border personal information; 3) advancing into the areas of 5G, smart manufacturing and robot-related fields in China; 4) enhancing collaboration in terms of internationalization of innovative entrepreneurial ecosystems; 5) pursuing agreements to address the issues of technology deception and technical protection. Second, we need to enhance all-round convergence and win-win cooperation with India through the following channels: 1) early enhancement of core SW technologies such as artificial intelligence, embedded and cloud computing via using India's excellent SW, IT service capability; 2) taking advantage of India's Big Data resources, including Aadhaar, the world's largest digital personal authentication system; 3) participating in smart manufacturing, digital infrastructure development with new technologies and products related to smart city initiatives, cooperation between start-ups in both countries; 4) to do this, we will need to consider utilizing the Vision Group of Korea-India Future Strategy; and 5) creating a Korea-India Innovation Venture Fund. Lastly, with Singapore, we need to strengthen innovation cooperation in policies and systems, education, R&D, and entrepreneurial ecosystems that underpin the 4th IR. |
| Keywords: | 4th industrial revolution strategy; China; India; Singapore |
| Date: | 2018–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2018_014&r=ino |
| By: | Alfonso Expósito (Department of Economic Analysis and Political Economy, University of Seville, Calle San Fernando 4, 41004 Sevilla (Spain).); Juan A. Sanchis-Llopis (Department of Economic Structure, University of Valencia, Avda. dels Tarongers s/n, 46022 Valencia (Spain).) |
| Abstract: | This paper examines the impacts of product, process, and organisational innovations on two alternative dimensions of business performance: finance and operations. Two indicators capture financial performance: sales increase and production cost reduction. Operational firm performance is captured by two alternative indicators: productive capacity augmentation and quality improvement of product/service provided by the firm. Using a wide-ranging sample of Spanish SMEs, our findings highlight the existence of significant impacts of innovation on both these dimensions of business performance, although these impacts differ regarding the type of innovation and the performance indicator considered. Furthermore, our results indicate that the relationship between innovation choices in SMEs and business performance should be analysed from a multidimensional approach. These findings reveal significant implications for innovation policies and innovation strategies for SMEs. |
| Keywords: | innovation, business performance, multi-dimensional analysis, SME, Spain |
| JEL: | O32 L25 C25 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:eec:wpaper:1805&r=ino |
| By: | Koski, Heli; Luukkonen, Juha |
| Abstract: | This paper empirically analyzes how markets value personal data related innovation in four prominent domains, in which firms’ potential to exploit value from data is identified to be considerable: finance, health, location-based services and artificial intelligence. We link the innovation economics literature to psychology-grounded financial economics theories of investor attention and salience theory. Our data from 117 large technology companies active in the ICT sector from the years 2007–2014 suggest that firms’ personal data related innovations and knowledge stocks in technology domains of location-based services and artificial intelligence contributed substantially to firm value. The premiums gained from personal data related innovation were particularly significant for data giants holding knowledge stocks in the location-based service domain. Our empirical results indicate that a strong positive relationship between personal data related knowledge stocks of the location-based services domain and firm value relates primarily to investor attention intensified during periods of media hype. Our data provide new insights into the market valuation of intangible assets: investors seem to overweight more salient right tails of firms’ knowledge stocks of emerging technologies while neglecting salient left tails. |
| Keywords: | Firm value, innovation, personal data, investor attention, saliency theory, technology salience |
| JEL: | D22 L2 O3 |
| Date: | 2018–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:rif:wpaper:59&r=ino |
| By: | Rui Costa (London School of Economics); Nikhil Datta (London School of Economics); Stephen Machin (University College London); Sandra McNally (London School of Economics) |
| Abstract: | Estimates from the US suggest that increasing levels of human capital over the second half of the last century accounted for approximately one third of productivity growth, while some estimates of the social rate of return to R&D in the manufacturing sector have exceeded one hundred percent. Despite the contribution of both human capital and R&D to economic growth, the UK fiscal system does not treat the two equally when it comes to employer incentives to invest. Firms that invest in R&D are able to claim generous tax relief on their investments whereas there is no such across-the-board incentive to invest in the training of their workers. This is despite the fact that the rationale for government support to firm investment in human capital is similar to that for R&D and both are important for economic growth. We explain the economic rationale for government support in the form of tax credits, discuss current practice in the UK in relation to R&D, and address the evidence on effectiveness. We then discuss how the policy might be adapted to provide similar incentives for investing in human capital. |
| Keywords: | human capital, research and development, r&d, tax relief, United Kingdom |
| JEL: | H23 J24 O30 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:hka:wpaper:2018-030&r=ino |
| By: | Fanti, Lucrezia |
| Abstract: | This paper introduces the classical idea about the so-called directed and induced technical change (ITC) within a Keynesian demand-side and evolutionary endogenous growth model in order to analyze the interplay among technical change, long-run economic growth and functional income distribution. An ITC process is analyzed within an Agent-Based Stock-Flow Consistent (AB-SFC) model, wherein credit-constrained heterogeneous firms choose both the intensity and the direction of the innovation towards a labor- or capital-saving choice of technique. In the long-run, the model reproduces the so-called Kaldor stylized facts (i.e. with a purely labor-saving technical change), however during the transitional phase the model shows a labor-saving/capital-using innovation pattern, as the aggregate output-capital ratio decreases until it stabilizes in the long-run, as well as declining labor share for long time periods and we can ascribe these evidences mainly to the directed technical change process. In order to stress the effective role of the innovation bias on the model dynamics, we compare the baseline scenario with a counterfactual scenario wherein a neutral technical progress is at work. |
| Keywords: | Agent-Based Macroeconomics; Stock-Flow Consistent Models; Induced Technical Change; Directed Innovation; Choice of Techniques; Labor Share; Growth and Distribution. |
| JEL: | E24 E25 O33 O41 |
| Date: | 2018–03–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:86929&r=ino |
| By: | Al Baghal, Tarek; Bryson, Caroline; Fisher, Hayley; Hanson, Tim; Jessop, Curtis; Low, Hamish; Lynn, Peter; Martin, Nicole; McKay, Stephen; Sloan, Luke; Sobolewska, Maria |
| Abstract: | This paper presents some preliminary findings from Wave 10 of the Innovation Panel (IP10) of Understanding Society: The UK Household Longitudinal Study. Understanding Society is a major panel survey in the UK. In May 2017, the tenth wave of the Innovation Panel went into the field. IP10 used a mixed-mode design, using on-line interviews and face-to-face interviews. This paper describes the design of IP10, the experiments carried and the preliminary findings from early analysis of the data. |
| Date: | 2018–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:ese:ukhlsp:2018-06&r=ino |
| By: | Baum, Christopher F (Boston College and DIW Berlin); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Stephan, Andreas (Jönköping International Business School (JIBS) & Centre of Excellence for Science and Innovation Studies (CESIS)); Viklund-Ros, Ingrid (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology) |
| Abstract: | We exploit increased access to detailed employer-employee data to assess whether outside board members affect innovation performance among start-up firms. Using data for all new limited companies in Sweden born during 1999–2013 which have no more then 10 employees when formed, we provide structural equation estimates that deal with the endogenous selection of board directors. Our empirical findings show that an increase in the board’s expertise, measured by the relative productivity of the firms where outsiders are employed, has a significant and positive impact on the new firm’s propensity to apply for both patents and trademarks. |
| Keywords: | Start-ups; outside directors; innovation; patents; trademarks; productivity; endogeneity |
| JEL: | D24 O33 |
| Date: | 2018–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0468&r=ino |
| By: | Francisco A. Blanco; Francisco J. Delgado; Maria J. Presno |
| Abstract: | This article examines the convergence of the R&D expenditure in the EU28 for 2004–2015. We initially run a sigma convergence analysis and conclude with a club convergence approach. The overall results show convergence in the total expenditure, due to the behaviour of the business and higher education sectors, despite government sector divergence. However, noticeable differences between the EU15 and 13 EU countries are apparent. The business enterprise sector is the principle driver of EU15 R&D convergence, whereas for the EU13 this role is played by the government expenditure. The club convergence approach allows us to explore these insights through individualized analysis and clusterization. Results for the EU28 show two clubs for the total expenditure, but the analysis of its components reveals a larger grouping. Results evidence the necessity of revising the EU R&D policies towards greater coordination due to the impact of this expenditure on growth, development and integration. |
| Keywords: | convergence, R&D, expenditure, European Union |
| JEL: | H5 O3 O4 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:gov:wpregi:1804&r=ino |
| By: | Baum, Christopher F (Boston College and DIW Berlin); Lööf, Hans (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology); Perez, Luis (University of Minnesota); Stephan, Andreas (Jönköping International Business School (JIBS) & Centre of Excellence for Science and Innovation Studies (CESIS)) |
| Abstract: | This paper examines the impact of global value chains on rms' innovation capabilities. Using the United Nations Broad Economic Categories (BEC) system to identify offshoring-related intermediate imports, we study contracting out production over the period 2001-2014 from about 7,000 mainly small Swedish manufacturing frms to six different destinations and test hypotheses on improvements and outcomes of innovation capabilities. Our empirical fndings show that the strategy to participate in global value chains increases frms' innovative capability regardless of frms' technology intensity. The results are robust to a wide set of controls and in line with predictions in recent models of directed technical change. |
| Keywords: | Innovation Capabilities; Technical Change; Skill Premium; Panel Data |
| JEL: | F14 L23 O22 O32 |
| Date: | 2018–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0469&r=ino |
| By: | Giovanni Dosi (Laboratory of Economics and Management); Mauro Napoletano (Observatoire français des conjonctures économiques); Andrea Roventini (Laboratory of Economics and Management (LEM)); Tania Treibich (Maastricht University) |
| Abstract: | Abstract This paper presents the family of the Keynes+Schumpeter (K+S, cf. Dosi et al, J Econ Dyn Control 34 1748–1767 2010, J Econ Dyn Control 37 1598–1625 2013, J Econ Dyn Control 52 166–189 2015) evolutionary agent-based models, which study the effects of a rich ensemble of innovation, industrial dynamics and macroeconomic policies on the long-term growth and short-run fluctuations of the economy. The K+S models embed the Schumpeterian growth paradigm into a complex system of imperfect coordination among heterogeneous interacting firms and banks, where Keynesian (demand-related) and Minskian (credit cycle) elements feed back into the meso and macro dynamics. The model is able to endogenously generate long-run growth together with business cycles and major crises. Moreover, it reproduces a long list of macroeconomic and microeconomic stylized facts. Here, we discuss a series of experiments on the role of policies affecting i) innovation, ii) industry dynamics, iii) demand and iv) income distribution. Our results suggest the presence of strong complementarities between Schumpeterian (technological) |
| Keywords: | Keynes; Schumpeter; Evolutionary models |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/1a9acst1l284eo8kvqrqrnlbl1&r=ino |
| By: | Matthieu BOUSSICHAS (Ferdi); Vincent NOSSEK (Ferdi) |
| Abstract: | The adoption of the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) has, amongst other things, raised the issue of how the activities implemented to help achieve these goals will be financed. The sheer scale of the funding required is quite breathtaking: the United Nations (UN) has indicated that several thousand billion dollars (USD) will be needed on a yearly basis to achieve the SDGs (UNCTAD, 2014). Given that Official Development Assistance (ODA) falls far short of meeting these requirements, the core issue is identifying how to channel the major resources available worldwide into financing these goals. As implementing mechanisms that are able to effectively channel the available resources into sustainable development requires innovation, the term “innovative financing” is used when referring to specific mechanisms designed to promote the common good, whilst drawing on private actors and market instruments.This working document aims to take stock of the main innovative financing for development mechanisms based on a brief review of the literature and the debates at the workshop arranged by FERDI, the Institut du Développement Durable et des Relations Internationales (Institute for Sustainable Development and International Relations, IDDRI) and the French Ministry of European and Foreign Affairs on 20 March 2018. |
| Keywords: | Agenda 2030, financements innovants |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:4341&r=ino |
| By: | Thomas Kemeny (Queen Mary, University of London); Taner Osman (University of California, Los Angeles) |
| Abstract: | Innovative, high-technology industries are commonly described as drivers of regional development. ‘Tech’ workers earn high wages, but they are also said to generate knock-on effects throughout the local economies that host them, spurring growth in jobs and wages in nontradable activities. At the same time, in iconic high-tech agglomerations like the San Francisco Bay Area, the home of Silicon Valley, the success of the tech industry creates tensions, in part as living costs rise beyond the reach of many non-tech workers. Across a large sample of U.S. cities, this paper explores these issues systematically. Combining annual data on wages, employment and prices from the Quarterly Census of Employment and Wages, the Department of Housing and Urban Development and the Consumer Price Index, it estimates how growth in tradable tech employment affects the real, living-cost deflated wages of local workers in nontradable sectors. Results indicate that high-technology employment has significant, positive, but modest effects on the real wages of workers in nontradable sectors. These effects appear to be spread consistently across different kinds of nontradable activities. In terms of substantive wider impacts, tech appears benign, though fairly ineffectual. |
| Keywords: | high-technology, inequality, real wages, nontradable services; specialization, housing |
| JEL: | E24 J21 J31 L86 O18 R11 R31 |
| Date: | 2018–05 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:89&r=ino |
| By: | Nakamura, Leonard I. (Federal Reserve Bank of Philadelphia); Samuels, Jon (Bureau of Economic Analysis); Soloveichik, Rachel (Bureau of Economic Analysis) |
| Abstract: | The Internet has evolved from Web 1.0, with static web pages and limited interactivity, to Web 2.0, with dynamic content that relies on user engagement. This change increased production costs significantly, but the price charged for Internet content has generally remained the same: zero. Because no transaction records the “purchase” of this content, its value is not reflected in measured growth and productivity. To capture the contribution of the “free” Internet, we model the provision of “free” content as a barter transaction between the content users and the content creators, and we value this transaction at production cost. When we incorporate this implicit transaction into U.S. gross domestic product (GDP), productivity, and household accounts, we find that including “free” content raises estimates of growth, but not nearly enough to reverse the recent slowdown. |
| Keywords: | Internet; productivity; advertising; marketing; measurement; GDP |
| JEL: | C82 L81 L82 M3 O3 O4 |
| Date: | 2018–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedpwp:18-17&r=ino |
| By: | Bernard Beaudreau (Université Laval) |
| Abstract: | Drawing from the only two known industrial revolutions, this paper present a theory of technological/structural/industrial revolutions based on pull and push factors. Specifically, generalizing from the first industrial revolution (FIR) in Great Britain and the U.S. post-bellum economic growth (1880-1900) and second industrial revolution (SIR), we show that two fundamental conditions appear to be necessary, namely the existence of a set of new market opportunities (pull) as well as the existence of a new set of process innovations/new technologies (push). In other words, the overriding, underlying shock (i.e. the ultimate cause) must induce push and pull factors, without which the revolution in question will not occur. In the case of the first industrial revolution, we argue that the migration of 100,000-140,000 French Huguenot refugees to the shores of England, Ireland and Scotland was among the causes, while in the case of the second industrial revolution, it was the steam engine which ultimately contributed to the opening up of the West, the creation of a national market and the resulting mass production. |
| Keywords: | Industrial Revolution, Networks, Innovation |
| JEL: | O12 B52 N14 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7508525&r=ino |
| By: | Møen, Jarle (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | According to theory, direct R&D grants should be used for projects with low private returns, high social returns and high risk. R&D tax credits, on the other hand, allow firms to choose projects freely according to their private returns. Building on the standard R&D capital model, I develop a framework for estimating private returns to R&D projects with different types of funding. I apply the framework to estimate the corporate returns to subsidized R&D projects in Norway. Consistent with theory and a high quality grant allocation process, I find that projects funded through direct grants have private returns that are not significantly different from zero and with high variance, while the return to R&D projects financed by tax credits is just slightly below the return to R&D projects financed by own funds. The latter two return estimates are 16 % and 19 % respectively. I find that SMEs and small R&D performers have somewhat higher returns to R&D than larger firms. The overall return estimate across all types of finance is 15 %. This is in line with recent meta-regression results in the international literature. |
| Keywords: | Returns to R&D; R&D capital model; Knowledge capital model; R&D subsidies; R&D grants; R&D tax credit; Innovation Policy; Technology policy; Norway |
| JEL: | H25 O32 O38 |
| Date: | 2018–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2018_009&r=ino |