Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence
January 01, 2000
Is public R&D spending complementary and thus “additional” to private R&D spending, or does it
substitute for and tend to “crowd out” private R&D? Conflicting answers are given to this question. The authors survey the body of available econometric evidence accumulated over the past 35 years.