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The case for technology policy: A tentative evaluation

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  • Paqué, Karl-Heinz
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    Abstract

    This paper is a tentative summary and appraisal of the main theoretical arguments and empirical evidence for/against an industrial policy in support of high-tech industries. The paper reviews arguments based on endogenous growth theory and strategic trade theory and surveys the most relevant pieces of empirical evidence, notably on external learning effects and international rent-shifting. The author concludes that there is no solid empirical basis for sector-specific technology policies, but that one might make a sensible case for non-discriminatory government support to knowledge creation by private firms, e.g., through a generous tax treatment of private spending on research and development.

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    Bibliographic Info

    Paper provided by Kiel Institute for the World Economy in its series Kiel Working Papers with number 714.

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    Date of creation: 1995
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    Handle: RePEc:kie:kieliw:714

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    1. Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
    2. Coe, David T & Helpman, Elhanan & Hoffmaister, Alexander W, 1997. "North-South R&D Spillovers," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(440), pages 134-49, January.
    3. Timothy F. Bresnahan & Manuel Trajtenberg, 1992. "General Purpose Technologies "Engines of Growth?"," NBER Working Papers 4148, National Bureau of Economic Research, Inc.
    4. Crandall, Robert W., 1990. "'Entry into the market for large transport aircraft' by G. Klepper," European Economic Review, Elsevier, Elsevier, vol. 34(4), pages 799-800, June.
    5. Laussel, Didier, 1990. "'Entry into the market for large transport aircraft' by G. Klepper," European Economic Review, Elsevier, Elsevier, vol. 34(4), pages 800-803, June.
    6. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, Elsevier, vol. 18(1-2), pages 83-100, February.
    7. Rivera-Batiz, Luis A & Romer, Paul M, 1991. "Economic Integration and Endogenous Growth," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 106(2), pages 531-55, May.
    8. Coe, D.T. & Helpman, E., 1993. "International R&D Spillovers," Papers, Tel Aviv 5-93, Tel Aviv.
    9. Paul Krugman, 1986. "Strategic Trade Policy and the New International Economics," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262610450, December.
    10. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
    11. Aghion, P. & Howitt, P., 1990. "A Model Of Growth Through Creative Destruction," DELTA Working Papers, DELTA (Ecole normale supérieure) 90-12, DELTA (Ecole normale supérieure).
    12. Richard Baldwin & Harry Flam, 1989. "Strategic trade policies in the market for 30–40 seat commuter aircraft," Review of World Economics (Weltwirtschaftliches Archiv), Springer, Springer, vol. 125(3), pages 484-500, September.
    13. Rivera-Batiz, Luis A. & Romer, Paul M., 1991. "International trade with endogenous technological change," European Economic Review, Elsevier, Elsevier, vol. 35(4), pages 971-1001, May.
    14. Irwin, Douglas A. & Klenow, Peter J., 1996. "High-tech R&D subsidies Estimating the effects of Sematech," Journal of International Economics, Elsevier, Elsevier, vol. 40(3-4), pages 323-344, May.
    15. Douglas A. Irwin, 1994. "Trade Politics and the Semiconductor Industry," NBER Working Papers 4745, National Bureau of Economic Research, Inc.
    16. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
    17. Klepper, Gernot, 1990. "Entry into the market for large transport aircraft," European Economic Review, Elsevier, Elsevier, vol. 34(4), pages 775-798, June.
    18. Richard Baldwin & Paul Krugman, 1988. "Industrial Policy and International Competition in Wide-Bodied Jet Aircraft," NBER Chapters, National Bureau of Economic Research, Inc, in: Trade Policy Issues and Empirical Analysis, pages 45-78 National Bureau of Economic Research, Inc.
    19. Wyplosz, Charles, 1991. "International trade with endogenous technological change : by L.A. Rivera-Batiz and P.M. Romer," European Economic Review, Elsevier, Elsevier, vol. 35(4), pages 1002-1004, May.
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