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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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    File URL: http://econstor.eu/bitstream/10419/46985/1/257564187.pdf
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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. Douglas A. Irwin, 1994. "Trade Politics and the Semi-conductor Industry," University of Chicago - George G. Stigler Center for Study of Economy and State, Chicago - Center for Study of Economy and State 92, Chicago - Center for Study of Economy and State.
    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. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May.
    4. Laussel, Didier, 1990. "'Entry into the market for large transport aircraft' by G. Klepper," European Economic Review, Elsevier, vol. 34(4), pages 800-803, June.
    5. Timothy F. Bresnahan & Manuel Trajtenberg, 1992. "General Purpose Technologies "Engines of Growth?"," NBER Working Papers 4148, National Bureau of Economic Research, Inc.
    6. Klepper, Gernot, 1990. "Entry into the market for large transport aircraft," European Economic Review, Elsevier, vol. 34(4), pages 775-798, June.
    7. Luis A. Rivera-Batiz & Paul M. Romer, 1991. "International Trade with Endogenous Technological Change," NBER Working Papers 3594, National Bureau of Economic Research, Inc.
    8. Paul Krugman, 1986. "Strategic Trade Policy and the New International Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610450, December.
    9. Richard Baldwin & Harry Flam, 1989. "Strategic trade policies in the market for 30–40 seat commuter aircraft," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 125(3), pages 484-500, September.
    10. Glaeser, Edward L & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1992. "Growth in Cities," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 100(6), pages 1126-52, December.
      • Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992. "Growth in Cities," Scholarly Articles 3451309, Harvard University Department of Economics.
      • Edward L. Glaeser & Hedi D. Kallal & Jose A. Scheinkman & Andrei Shleifer, 1991. "Growth in Cities," NBER Working Papers 3787, National Bureau of Economic Research, Inc.
    11. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
    12. Wyplosz, Charles, 1991. "International trade with endogenous technological change : by L.A. Rivera-Batiz and P.M. Romer," European Economic Review, Elsevier, vol. 35(4), pages 1002-1004, May.
    13. Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers, Tel Aviv 14-92, Tel Aviv.
    14. Luis A. Rivera-Batiz & Paul M. Romer, 1990. "Economic Integration and Endogenous Growth," NBER Working Papers 3528, National Bureau of Economic Research, Inc.
    15. Douglas A. Irwin, 1996. "Trade Policies and the Semiconductor Industry," NBER Chapters, in: The Political Economy of American Trade Policy, pages 11-72 National Bureau of Economic Research, Inc.
    16. Richard Baldwin & Paul Krugman, 1988. "Industrial Policy and International Competition in Wide-Bodied Jet Aircraft," NBER Chapters, in: Trade Policy Issues and Empirical Analysis, pages 45-78 National Bureau of Economic Research, Inc.
    17. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth Through Creative Destruction," Scholarly Articles 12490578, Harvard University Department of Economics.
    18. Crandall, Robert W., 1990. "'Entry into the market for large transport aircraft' by G. Klepper," European Economic Review, Elsevier, vol. 34(4), pages 799-800, June.
    19. Irwin, Douglas A. & Klenow, Peter J., 1996. "High-tech R&D subsidies Estimating the effects of Sematech," Journal of International Economics, Elsevier, vol. 40(3-4), pages 323-344, May.
    20. Brander, James A. & Spencer, Barbara J., 1985. "Export subsidies and international market share rivalry," Journal of International Economics, Elsevier, vol. 18(1-2), pages 83-100, February.
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