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The Design of R&D Support Schemes for Industry

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  • Russell Thomson

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Intellectual Property Research Institute of Australia, The University of Melbourne)

  • Elizabeth Webster

    ()
    (Melbourne Institute of Applied Economic and Social Research, The University of Melbourne; Intellectual Property Research Institute of Australia, The University of Melbourne)

Abstract

Scant discussion exists in the literature about the relative design merits of various R&D schemes and most authors treat program design as a black box. In this paper, we assess the design features of three major forms of R&D support: entitlement schemes, competitive schemes and industry R&D boards. We use a combination of evidence to comment on how well these schemes perform in terms of: firm engagement (how does the scheme recruit business interest?); project selection (what criteria are used and who selects the projects?); payment structure (how is financial support structured?) and administrative costs (what is the burden?).

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Bibliographic Info

Paper provided by Melbourne Institute of Applied Economic and Social Research, The University of Melbourne in its series Melbourne Institute Working Paper Series with number wp2011n24.

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Length: 25 pages
Date of creation: Nov 2011
Date of revision:
Handle: RePEc:iae:iaewps:wp2011n24

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Related research

Keywords: R&D policy; tax concession; government grants; R&D boards; R&D support;

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References

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  1. Baker, Erin & Adu-Bonnah, Kwame, 2008. "Investment in risky R&D programs in the face of climate uncertainty," Energy Economics, Elsevier, vol. 30(2), pages 465-486, March.
  2. Daron Acemoglu & Philippe Aghion & Leonardo Bursztyn & David Hemous, 2012. "The Environment and Directed Technical Change," American Economic Review, American Economic Association, vol. 102(1), pages 131-66, February.
  3. Aerts, Kris & Schmidt, Tobias, 2006. "Two for the price of one? On additionality effects of R&D subsidies: A comparison between Flanders and Germany," ZEW Discussion Papers 06-63, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Richardson, M. & Wilkie, S., 1988. "Incremental R$D Subsidies," Papers 133, Princeton, Woodrow Wilson School - Public and International Affairs.
  5. Bronwyn H. Hall & Jacques Mairesse & Pierre Mohnen, 2009. "Measuring the Returns to R&D," NBER Working Papers 15622, National Bureau of Economic Research, Inc.
  6. Russell Thomson, 2010. "Tax Policy and R&D Investment by Australian Firms," The Economic Record, The Economic Society of Australia, vol. 86(273), pages 260-280, 06.
  7. Elizabeth Webster & Paul H. Jensen, 2009. "Do Patents Matter for Commercialization?," Melbourne Institute Working Paper Series wp2009n08, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
  8. Arrow, Kenneth J & Lind, Robert C, 1970. "Uncertainty and the Evaluation of Public Investment Decisions," American Economic Review, American Economic Association, vol. 60(3), pages 364-78, June.
  9. Garrone, Paola & Grilli, Luca, 2010. "Is there a relationship between public expenditures in energy R&D and carbon emissions per GDP? An empirical investigation," Energy Policy, Elsevier, vol. 38(10), pages 5600-5613, October.
  10. Klaassen, Ger & Miketa, Asami & Larsen, Katarina & Sundqvist, Thomas, 2005. "The impact of R&D on innovation for wind energy in Denmark, Germany and the United Kingdom," Ecological Economics, Elsevier, vol. 54(2-3), pages 227-240, August.
  11. Bayona-Sáez, Cristina & García-Marco, Teresa, 2010. "Assessing the effectiveness of the Eureka Program," Research Policy, Elsevier, vol. 39(10), pages 1375-1386, December.
  12. Nagano, Mamoru, 2006. "R&D investment and the government's R&D policies of electronics industries in Korea and Taiwan," Journal of Asian Economics, Elsevier, vol. 17(4), pages 653-666, October.
  13. Irwin Feller, 1992. "American state governments as models for national science policy," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 11(2), pages 288-309.
  14. Moore, Michal C. & Arent, Douglas J. & Norland, Douglas, 2007. "R&D advancement, technology diffusion, and impact on evaluation of public R&D," Energy Policy, Elsevier, vol. 35(3), pages 1464-1473, March.
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