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Is public R&D a complement or substitute for private R&D? A review of the econometric evidence
Open accessAbstract
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. We survey the body of available econometric evidence accumulated over the past 35 years. A framework for analysis of the problem is developed to help organize and summarize the findings of econometric studies based on time series and cross-section data from various levels of aggregation (laboratory, firm, industry, country). The findings overall are ambivalent and the existing literature as a whole is subject to the criticism that the nature of the “experiment(s)” that the investigators envisage is not adequately specified. We conclude by offering suggestions for improving future empirical research on this issue.
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Cites
Contingencies of innovative networks: A case study of successful interfirm R & D collaboration
Häusler, J., Hohn, H.-W., & Lütz, S. (1994) · Research Policy · doi:10.1016/0048-7333(94)90026-4 · Cited by 136
Cited by
Environmental Policy and Technological Change
Jaffe, A. B., Newell, R. G., & Stavins, R. N. (2002) · Environmental and Resource Economics · doi:10.1023/a:1015519401088 · Cited by 1,050
Do R&D Subsidies Stimulate or Displace Private R&D? Evidence from Israel
Lach, S. (2002) · The Journal of Industrial Economics · doi:10.1111/1467-6451.00182 · Cited by 587
Some Causal Effects of an Industrial Policy
Criscuolo, C., Martin, R., Overman, H. G., & Van Reenen, J. (2019) · American Economic Review · doi:10.1257/aer.20160034 · Cited by 554
Czarnitzki, D., Ebersberger, B., & Fier, A. (2007) · Journal of Applied Econometrics · doi:10.1002/jae.992 · Cited by 478
Feldman, M. P., & Kelley, M. R. (2006) · Research Policy · doi:10.1016/j.respol.2006.09.019 · Cited by 448
Metadata
- Authors
- David, P. A., Hall, B. H., & Toole, A. A.
- Venue
- Research Policy
- Publisher
- Elsevier BV
- Published
- 2000-04
- Volume
- 29
- Issue
- 4-5
- Pages
- 497-529
- ISSN
- 0048-7333 (ISSN-L)
- OpenAlex
- W3125327005
- Cited by
- 1,634
- References
- 1
- FWCI
- 48.38
- Type
- journal article
- Language
- en
- Open access
- hybrid
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- David, P. A., Hall, B. H., & Toole, A. A. (2000). Is public R&D a complement or substitute for private R&D? A review of the econometric evidence. Research Policy. https://doi.org/10.1016/s0048-7333(99)00087-6
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