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R&D Subsidies and Multinational Firm Ownership

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Author Info
Richard Gretz (Bradley University)
Jannett Highfill (Bradley University)
Robert Scott (Bradley University)

Additional information is available for the following registered author(s):

Abstract

Most industrialized countries subsidize private sector R&D, even under some circumstances when the firm is owned by foreigners. The present paper, using a simple theoretical analysis of a monopoly firm selling only to the U.S. market, argues that such subsidies are welfare enhancing--as long, of course--as the funding agency chooses the projects it funds wisely. The paper suggests that a subsidy rate of 50% might be warranted under some circumstances.

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File URL: http://www.bepress.com/cgi/viewcontent.cgi?article=1248&context=gej
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Publisher Info
Article provided by International Trade and Finance Association in its journal Global Economy Journal.

Volume (Year): 7 (2007)
Issue (Month): 1 ()
Pages: 5
Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Handle: RePEc:bep:glecon:7:2007:1:5

Note: oai:bepress.com:gej-1248
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Related research
Keywords: ATP Advanced Technology Program NIST National Institute of Standards and Technology

References listed on IDEAS
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  1. Facundo Albornoz & Grégory Corcos, 2005. "Subsidy competition in integrating economies," PSE Working Papers 2005-21, PSE (Ecole normale supérieure). [Downloadable!]
    Other versions:
  2. Feldman, Maryann P & Kelley, Maryellen R, 2003. " Leveraging Research and Development: Assessing the Impact of the U.S. Advanced Technology Program," Small Business Economics, Springer, vol. 20(2), pages 153-65, March. [Downloadable!] (restricted)
  3. Nick Bloom & Mark Schankerman & John Van Reenen, 2005. "Identifying technology spillovers and product market rivalry," STICERD - Economics of Industry Papers 40, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
    Other versions:
  4. Muniagurria, Maria E., 1995. "Growth and research and development," Journal of Economic Dynamics and Control, Elsevier, vol. 19(1-2), pages 207-235. [Downloadable!] (restricted)
  5. Matthews, Steven & Moore, John, 1987. "Monopoly Provision of Quality and Warranties: An Exploration in the Theory of Multidimensional Screening," Econometrica, Econometric Society, vol. 55(2), pages 441-67, March. [Downloadable!] (restricted)
    Other versions:
  6. Link, Albert N. & Scott, John T., 2001. "Public/private partnerships: stimulating competition in a dynamic market," International Journal of Industrial Organization, Elsevier, vol. 19(5), pages 763-794, April. [Downloadable!] (restricted)
  7. Fang Cai & Francis E. Warnock, 2006. "International Diversification at Home and Abroad," NBER Working Papers 12220, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  8. Gregory Tassey, 2005. "Underinvestment in Public Good Technologies," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 89-113, 01. [Downloadable!]
  9. Andrew Brod & Ram Shivakumar, 1997. "R&D Cooperation and the Joint Exploitation of R&D," Canadian Journal of Economics, Canadian Economics Association, vol. 30(3), pages 673-84, August. [Downloadable!] (restricted)
  10. Iñigo Herguera & Stefan Lutz, 2003. "The effect of subsidies to product innovation on international competition," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 12(5), pages 465-480, October. [Downloadable!] (restricted)
  11. Tisdell, Clement A, 1973. "The Australian Research Subsidy to Overseas Firms and Other Aspects of the Distribution of Research Grants," The Economic Record, The Economic Society of Australia, vol. 49(126), pages 194-214, June.
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This page was last updated on 2008-11-19.

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