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The Damoclean Tax and Innovation

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  • Scott, John T

Abstract

The paper presents a novel tax that is designed to improve the performance of research and development (R&D) investments. Ideally, the tax allows the technical efficiencies of monopoly while bringing about the desirable effects of the competitive pressure of R&D rivalry. Thus, with the tax, the state can sanction a monopoly of R&D investment in order to attain technical efficiencies and yet avoid the underinvestment in R&D that would result without competitive pressures. A critique of the tax emphasizes the problems of implementing it and offers a more practical alternative that would achieve the same desirable effects.

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Bibliographic Info

Article provided by Springer in its journal Journal of Evolutionary Economics.

Volume (Year): 5 (1995)
Issue (Month): 1 (February)
Pages: 71-89

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Handle: RePEc:spr:joevec:v:5:y:1995:i:1:p:71-89

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Cited by:
  1. John Scott, 2000. "The Directions for Technological Change: Alternative Economic Majorities and Opportunity Costs," Review of Industrial Organization, Springer, vol. 17(1), pages 1-16, August.
  2. Scott, John T., 2005. "Corporate social responsibility and environmental research and development," Structural Change and Economic Dynamics, Elsevier, vol. 16(3), pages 313-331, September.
  3. Maria Parisi & Alessandro Sembenelli, 2003. "Is Private R & D Spending Sensitive to Its Price? Empirical Evidence on Panel Data for Italy," Empirica, Springer, vol. 30(4), pages 357-377, December.

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