This paper evaluates how R&D subsidies to the business sector are typically awarded. The authors identify two sources of ineciency: the selection based on a ranking of individual projects, rather than complete allocations, and the failure to induce competition among applicants in order to extract and use information about the necessary funding.
The authors evaluate the importance of R&D activities for firms decision about location. They use micro-level data for the Portuguese industrial sector and focus on the location choices made by new starting firms during 1992-2000 within 275 municipalities.
This paper makes an estimate of R&D expenditure for different institutional categories in Italian municipalities (University, Public Administration, and Business). The estimated database has been completed with economic variables referring to the individual municipalities.
The main purpose in this paper is to study to what extent accessibility to R&D and human capital can explain patent production. Therefore a knowledge production function is estimated both on aggregated level and for different industrial sectors. The output of the knowledge production is the number patent applications in Swedish municipalities from 1994 to 1999.
This paper presents a model in which public R&D stock is included as a quasi-fixed input in a variable cost function. Its price affects the long run desired level, while its shadow price indicates whether under (over) investment occurs in the short run.
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.