r&d

The authors analyze whether technology inducement prizes could be a useful complement to standard research grants and contracts in developing climate change mitigation technologies. Findings indicate that there are important conceptual advantages to using inducement prizes in certain circumstances.

This report details the Presidents fiscal year 2006 budget recommendations for federal R&D. The proposed federal R&D portfolio in FY 2006 is $132.3 billion, just barely an increase of 0.1 percent or $84 million above this year, and far short of the 2.0 percent increase needed to keep pace with expected inflation.

This paper presents an empirical study of the channels of influence from uncertainty to fixed investment suggested by real options theory. Using panel data from the Confederation of British Industry Industrial Trends Survey, the authors report OLS estimates of the impact of uncertainty on investment where the regressors are augmented by cross-sectional averages of the dependent variable and of the individual specific regressors, as recently suggested by Pesaran (2004).

The inverse probability weighted Generalised Empirical Likelihood estimator is proposed for the estimation of the parameters of a vector of possibly non-linear unconditional moment functions in the presence of conditionally independent sample selection or attrition. The estimator is applied to the estimation of the firm size elasticity of product and process R&D expenditures using a panel of German manufacturing firms, which is affected by attrition and selection into R&D activities.

This study considers employment and productivity growth generated by the public funding of R&D using linked employer-employee data in Finland. Public subsidies, instrumented by available public R&D funding in the industry/region, have a positive effect on productivity growth in small and medium-sized firms and in firms close to the top of their field in productivity.

This study analyses how public R&D financing impacts companies. The main goal is to study whether public and private R&D financing are substitutes or complements, and whether this impact differs between financially constrained and unconstrained companies.

Using a game theoretical model on firms simultaneous investments in product and process innovation, the authors deduct and empirically test hypotheses on the optimal R&D portfolio, investment, performance, and dynamic efficiency of R&D for acquisitions and in independently competing firms. They use Community Innovation Survey data on Italian manufacturing firms.

A growth model with endogenous innovation and accumulation of high-tech and low-tech human capital is developed. The model accounts for a recently established fact about human capital composition, which stated that the richest countries are investing proportionally less than middle income countries in engineering and technical human capital, due to the consideration of a negative effect of technological development on the accumulation of high-tech human capital.

This paper decomposes knowledge-diffusing trade flows and estimates their impacts separately. Overall, trade generates positive knowledge spillovers, but the effects of intra-industry trade are ambiguous. With regard to sectoral import penetration, the authors find that potential positive spillovers are dominated by negative competition effects.

This paper augments an R&D-based growth model of the third generation with human capital accumulation and impure altruism, calibrates it with U.S. data, and investigates whether the market provides too little or too much R&D.