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Growth and Public Support to Research and Imitation: The International Connection

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    Abstract

    This paper studies technology policy within the context of an R&D-based growth model. We first use cross-country data to document several empirical regularities regarding the relationship between public support to research and imitating, and relative income levels. We then construct a model in which the possibilibty of copying foreing ideas through a technology that exhibits diminishing imitation opportunities is sufficient to account for the observed average patterns. We also find that policy intervention can produce important welfare benefits; capital accumulation subsidies show a slightly larger contribution to the welfare improvement than R&D support.

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    File URL: ftp://ftp.econ.unavarra.es/pub/DocumentosTrab/DT9907.PDF
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    Bibliographic Info

    Paper provided by Departamento de Economía - Universidad Pública de Navarra in its series Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra with number 9907.

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    Length: 35 pages
    Date of creation: 1999
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    Handle: RePEc:nav:ecupna:9907

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    Keywords: research; imitation; policy; growthl; transitional dynamics.;

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