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Externalities of R&D Expenditures

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Author Info

  • Erik Dietzenbacher
  • Bart Los

Abstract

Innovation is generally recognized as a major source of economic growth. R&D investments explicitly aim at generating innovations and creating knowledge. Since knowledge has certain public good properties, positive externalities are likely to exist. In this paper, we extend well-known concepts from the input-output literature (backward multipliers) to indicate at which commodities stimuli should be targeted to enhance R&D and its positive externalities in the economy as a whole. Next, we argue that there may also be negative externalities of R&D, due to increased prices. This issue can be studied by means of forward multipliers. Both concepts are applied to the United States, 1977-90.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Economic Systems Research.

Volume (Year): 14 (2002)
Issue (Month): 4 ()
Pages: 407-425

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Handle: RePEc:taf:ecsysr:v:14:y:2002:i:4:p:407-425

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Related research

Keywords: R And D Expenditures; Price Externalities; Multipliers;

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Citations

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Cited by:
  1. Massón Guerra, José Luis, 2007. "El capital empresarial como determinante de la productividad y el crecimiento en España
    [The Impact of Entrepreneurship Capital on Spanish's Labor Productivity and Economic Growth]
    ," MPRA Paper 4073, University Library of Munich, Germany.
  2. Athena Belegri-Roboli & Panayotis Michaelides, 2005. "Measurement of R&D Multipliers: The Case of Greece," The Journal of Technology Transfer, Springer, vol. 30(3), pages 327-332, 07.
  3. Giovanni Cerulli & Bianca Potì, 2007. "Measuring Intersectoral Knowledge Spillovers: an Application of Sensitivity Analysis to Italy," CERIS Working Paper 200711, Institute for Economic Research on Firms and Growth - Moncalieri (TO).
  4. Julio Sanchez-Choliz & Rosa Duarte, 2003. "Production Chains and Linkage Indicators," Economic Systems Research, Taylor & Francis Journals, vol. 15(4), pages 481-494.
  5. Massón-Guerra, José Luis, 2008. "The Multipliers and Key Sectors of Entrepreneurship Spillover: An input-output approach," MPRA Paper 10733, University Library of Munich, Germany.
  6. Mikuláš Luptáčik & Wolfgang Koller & Bernhard Mahlberg & Herwig W. Schneider, 2008. "Growth and Employment Potentials of Chosen Technology Fields," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 2(1), pages 041-075, March.
  7. Massón-Guerra, José Luis & Vendrell-Ferrero, Ferran, 2008. "Entrepreneurship Spillover and the determinants of Key Sectors for new business creation: An inter-sectorial approach," MPRA Paper 10748, University Library of Munich, Germany.
  8. Barbara Diaz & Laura Moniche & Antonio Morillas, 2006. "A Fuzzy clustering approach to the key sectors of the Spanish economy," Economic Systems Research, Taylor & Francis Journals, vol. 18(3), pages 299-318.

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