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R&D Policy in Israel: An Overview and Reassessment

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Manuel Trajtenberg

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Abstract

The goal of this paper is to provide an overview of R&D policy in Israel, and critically examine the policies currently in place as well as proposals to change them. We review in Part I the various programs of the Office of the Chief Scientist (OCS) of the Ministry of Industry and Trade in Israel, followed by a discussion of studies on the impact of OCS support, and an overview of the rise of the High-Tech sector in Israel with the aid patent data. Part II examines outstanding policy issues and suggestions for reform. It opens with a discussion of allocation schemes for the OCS Grants Program in view of a rigid budget constraint, and an assessment of possible departures from neutrality.' We then examine the payback system, the conditionality of production in Israel, the Magnet' program for the support of generic R&D, and related issues. Next we review the difficulties in setting a policy target for R&D spending, and lastly we ask whether government policy should perhaps be aimed also at the supply side (of the market for R&D personnel), rather than just keep subsidizing the demand side. Clearly, these policy issues are of relevance not just for Israel but for any economy contemplating active government involvement in R&D.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 7930.

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Date of creation: Oct 2000
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Handle: RePEc:nbr:nberwo:7930

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Find related papers by JEL classification:
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Paul A. David & Bronwyn H. Hall & Andrew A. Toole, 1999. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Working Papers 99023, Stanford University, Department of Economics. [Downloadable!]
    Other versions:
  2. Eaton, Jonathan & Kortum, Samuel, 1996. "Trade in ideas Patenting and productivity in the OECD," Journal of International Economics, Elsevier, vol. 40(3-4), pages 251-278, May. [Downloadable!] (restricted)
    Other versions:
  3. Coe, David T. & Helpman, Elhanan, 1995. "International R&D spillovers," European Economic Review, Elsevier, vol. 39(5), pages 859-887, May. [Downloadable!] (restricted)
    Other versions:
  4. Jonathan Eaton & Eva Gutierrez & Samuel Kortum, 1998. "European Technology Policy," NBER Working Papers 6827, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  5. Austan Goolsbee, 1998. "Does Government R&D Policy Mainly Benefit Scientists and Engineers?," NBER Working Papers 6532, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Paul A. David and Bronwyn H. Hall., 2000. "Heart of Darkness: Modeling Public-Private Funding Interactions Inside the R&D Black Box," Economics Working Papers E00-275, University of California at Berkeley. [Downloadable!]
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  7. Saul Lach, 2000. "Do R&D Subsidies Stimulate or Displace Private R&D? Evidence from Israel," NBER Working Papers 7943, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
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(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Saul Lach, 2000. "Do R&D Subsidies Stimulate or Displace Private R&D? Evidence from Israel," NBER Working Papers 7943, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. Asher Blass & Oved Yosha, 2003. "Financing R&D in mature companies: an empirical analysis," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 12(5), pages 425-447, October. [Downloadable!] (restricted)
  3. Stephen Roper & Seamus Grimes, 2003. "Wireless Valley, Silicon Wadi and Digital Island - Helsinki, Tel Aviv and Dublin in the ICT Boom," ERSA conference papers ersa03p62, European Regional Science Association. [Downloadable!]
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