The Impact of Public R&D Expenditure on Business R&D

This file is part of IDEAS, which uses RePEc data

The Impact of Public R&D Expenditure on Business R&D

Author Info

Dominique Guellec
Bruno Van Pottelsberghe ()

Additional information is available for the following registered author(s):

Bruno van Pottelsberghe de

Abstract

This document attempts to quantify the aggregate net effect of government funding on business R&D in 17 OECD Member countries over the past two decades. Grants, procurement, tax incentives and direct performance of research (in public laboratories or universities) are the major policy tools in the field. The major results of the study are the following:

Direct government funding of R&D performed by firms (either grants or procurement) has a positive effect on business financed R&D (one dollar given to firms results in 1.70 dollars of research on average).
Tax incentives have a positive (although rather short-lived) effect on business-financed R&D.
Direct funding as well as tax incentives are more effective when they are stable over time: firms do not invest in additional R&D if they are uncertain of the durability of the government support.
Direct government funding and R&D tax incentives are substitutes: increased intensity of one reduces the effect of the other on business R&D.
The ...

Ce document vise à quantifier l’effet des financements gouvernementaux sur la dépense de R-D des entreprises au niveau agrégé, pour 17 pays Membres de l’OCDE sur les deux dernières décennies. Les dons, les achats publics, les incitations fiscales et la réalisation directe de la recherche (dans les laboratoires publics ou les universités) sont les principaux outils de la politique dans ce domaine. Les principaux résultats de l’étude sont les suivants :

Le financement direct par le gouvernement de la recherche réalisée par les entreprises (dons ou achats publics) a un effet positif sur le financement de la recherche par les entreprises (un dollar versé aux firmes se traduit en moyenne par 1.70 dollars de recherche).
Les incitations fiscales ont un effet positif (bien de court terme) sur le financement de la recherche par les entreprises.
Le financement direct comme les incitations fiscales sont plus efficaces lorsqu’ils sont stables dans le temps : les firmes n’effectuent pas de ...

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help file. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

Publisher Info
Paper provided by OECD Directorate for Science, Technology and Industry in its series OECD Science, Technology and Industry Working Papers with number 2000/4.

Download reference. The following formats are available: HTML, plain text, BibTeX, RIS (EndNote), ReDIF
Length:
Date of creation: 14 Jun 2000
Date of revision:
Handle: RePEc:oec:stiaaa:2000/4-en

Contact details of provider:
Postal: 2 rue Andre Pascal, 75775 Paris Cedex 16
Web page: http://www.oecd.org
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: ().

Related research
Keywords:

Other versions of this item:

Article
- Dominique Guellec & Bruno Van Pottelsberghe De La Potterie, 2003. "The Impact Of Public R&D Expenditure On Business R&D," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 12(3), pages 225-243, January. [Downloadable!] (restricted)

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.:

Holemans, Benni & Sleuwaegen, Leo, 1988. "Innovation expenditures and the role of government in Belgium," Research Policy, Elsevier, vol. 17(6), pages 375-379, December. [Downloadable!] (restricted)
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)
Other versions:
- Goolsbee, Austan, 1998. "Does Government R&D Policy Mainly Benefit Scientists and Engineers?," American Economic Review, American Economic Association, vol. 88(2), pages 298-302, May. [Downloadable!] (restricted)
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:
- 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," NBER Working Papers 7373, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
- Paul A. David & Bronwyn H. Hall & Andrew A. Toole, 2000. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Development and Comp Systems 9912002, EconWPA. [Downloadable!]
- Paul A. David & Bronwyn H. Hall & Andrew A. Toole, 2005. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Development and Comp Systems 0502011, EconWPA. [Downloadable!]
- Paul A. David, Bronwyn H. Hall and Andrew A. Toole., 1999. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Economics Working Papers E99-269, University of California at Berkeley. [Downloadable!]
- David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April. [Downloadable!] (restricted)
Keane, Michael P & Runkle, David E, 1992. "On the Estimation of Panel-Data Models with Serial Correlation When Instruments Are Not Strictly Exogenous," Journal of Business & Economic Statistics, American Statistical Association, vol. 10(1), pages 1-9, January.
Paul A. David & Bronwyn H. Hall, . "Heart of Darkness: Public-Private Interactions Inside the R&D Black Box," Working Papers 99024, Stanford University, Department of Economics. [Downloadable!]
Other versions:
- David, P.A. & Hall, B.H., 1999. "Heart of Darkness: Public-Private Interaction Inside the R&D Black Box," Economics Papers 1999-w16, Economics Group, Nuffield College, University of Oxford.
Cohen, Wesley M & Levinthal, Daniel A, 1989. "Innovation and Learning: The Two Faces of R&D," Economic Journal, Royal Economic Society, vol. 99(397), pages 569-96, September. [Downloadable!] (restricted)
Pierre Mohnen, 1999. "Tax Incentives: Issue and Evidence," CIRANO Working Papers 99s-32, CIRANO. [Downloadable!]
Bronwyn Hall, 1994. "R&D Tax Policy During the Eighties: Success or Failure?," NBER Working Papers 4240, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
Other versions:
- Hall, B.H., 1993. "R & D Tax Policy During the Eighties: Success or Failure?," Papers e-93-1, Stanford - Hoover Institution.
Lichtenberg, Frank R, 1984. "The Relationship between Federal Contract R&D and Company R&D," American Economic Review, American Economic Association, vol. 74(2), pages 73-78, May.
Scott J. Wallsten, 2000. "The Effects of Government-Industry R&D Programs on Private R&D: The Case of the Small Business Innovation Research Program," RAND Journal of Economics, The RAND Corporation, vol. 31(1), pages 82-100, Spring.
Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August. [Downloadable!] (restricted)
Klette, T.J. & Moen, J. & Griliches, Z., 1999. "Do Subsidies to Commercial R&D Reduce Market Failures? Microeconometric Evaluation Studies," Papers 16/99, Norwegian School of Economics and Business Administration-.
Other versions:
- Klette, Tor Jakob & Moen, Jarle & Griliches, Zvi, 2000. "Do subsidies to commercial R&D reduce market failures? Microeconometric evaluation studies1," Research Policy, Elsevier, vol. 29(4-5), pages 471-495, April. [Downloadable!] (restricted)
Nickell, Stephen J, 1981. "Biases in Dynamic Models with Fixed Effects," Econometrica, Econometric Society, vol. 49(6), pages 1417-26, November. [Downloadable!] (restricted)
Levy, David M., 1990. "Estimating the impact of government R&D," Economics Letters, Elsevier, vol. 32(2), pages 169-173, February. [Downloadable!] (restricted)
Switzer, Lorne, 1984. "The Determinants of Industrial R&D: A Funds Flow Simultaneous Equation Approach," The Review of Economics and Statistics, MIT Press, vol. 66(1), pages 163-68, February. [Downloadable!] (restricted)
Hall, Bronwyn & Van Reenen, John, 2000. "How effective are fiscal incentives for R&D? A review of the evidence," Research Policy, Elsevier, vol. 29(4-5), pages 449-469, April. [Downloadable!] (restricted)
Lichtenberg, Frank R, 1987. "The Effect of Government Funding on Private Industrial Research and Development: A Re-assessment," Journal of Industrial Economics, Blackwell Publishing, vol. 36(1), pages 97-104, September. [Downloadable!] (restricted)
Carmichael, Jeffrey, 1981. "The Effects of Mission-Oriented Public R&D Spending on Private Industry," Journal of Finance, American Finance Association, vol. 36(3), pages 617-27, June. [Downloadable!] (restricted)

Full references

Cited by:
(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.)

Bruno Van Pottelsberghe, 2004. "Les politiques de science et technologie et l’objectif de Lisbonne," Working Papers CEB 04-011.RS, Université Libre de Bruxelles, Solvay Business School, Centre Emile Bernheim (CEB). [Downloadable!]
Toole, Andrew A., 2005. "Does Public Scientific Research Complement Industry R&D Investment? The Case of NIH Supported Basic and Clinical Research and Pharmaceutical Industry R&D," ZEW Discussion Papers 05-75, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
Volker Grossmann, 2004. "How to Promote R&D-based Growth? Public Education Expenditure on Scientists and Engineers versus R&D Subsidies," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
Other versions:
- Grossmann, Volker, 2007. "How to promote R&D-based growth? Public education expenditure on scientists and engineers versus R&D subsidies," Journal of Macroeconomics, Elsevier, vol. 29(4), pages 891-911, December. [Downloadable!] (restricted)
Alexander Coad & Rekha Rao, 2007. "Firm Growth and R&D Expenditure," Papers on Econonmics and Evolution 2007-10, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
Erdal Atukeren, 2007. "A Causal Analysis of the R&D Interactions between the EU and the US," Global Economy Journal, International Trade and Finance Association, vol. 7(4), pages 1. [Downloadable!]
Jyrki Ali-Yrkkö, 2005. "Impact of Public R&D Financing on Private R&D: Does Financial Constraint Matter?," Economics Working Papers 030, European Network of Economic Policy Research Institutes. [Downloadable!]
Sabine Visser, 2007. "R&D in WorldScan," CPB Memoranda 189, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
Azèle Mathieu & Bruno Van Pottelsberghe, 2008. "A note on the drivers of R&D intensity," Working Papers CEB 08-002.RS, Université Libre de Bruxelles, Solvay Business School, Centre Emile Bernheim (CEB). [Downloadable!]
Other versions:
- Mathieu, Azèle & van Pottelsberghe, Bruno, 2008. "A Note on The Drivers of R&D Intensity," CEPR Discussion Papers 6684, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Dominique Guellec & Bruno Van Pottelsberghe, 2004. "From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter?," Working Papers CEB 04-010.RS, Université Libre de Bruxelles, Solvay Business School, Centre Emile Bernheim (CEB). [Downloadable!]
Other versions:
- Dominique Guellec & Bruno Van Pottelsberghe de la Potterie, 2004. "From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(3), pages 353-378, 07. [Downloadable!] (restricted)
Erdal Atukeren, 2005. "R&D Races and Spillovers between the EU and the US: Some Causal Evidence," Working papers 05-105, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
Spyros Arvanitis & Nora Sydow & Martin Woerter, 2005. "Is There Any Impact of University-Industry Knowledge Transfer on the Performance of Private Enterprises? – An Empirical Analysis Based¨on Swiss Firm Data," Working papers 05-117, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
Jyrki Ali-Yrkkö, 2004. "Impact of Public R&D Financing on Private R&D - Does Financial Constraint Matter?," Discussion Papers 943, The Research Institute of the Finnish Economy. [Downloadable!]
Martin Falk, 2004. "What Drives Business R&D Intensity Across OECD Countries?," WIFO Working Papers 236, WIFO. [Downloadable!]
Hannu Piekkola, 2005. "Public Funding of R&D and Growth: Firm-level Evidence from Finland," Discussion Papers 996, The Research Institute of the Finnish Economy. [Downloadable!]
Czarnitzki, Dirk & Fier, Andreas, 2001. "Do R&D subsidies matter? : Evidence for the German service sector," ZEW Discussion Papers 01-19, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
Claudio Bravo Ortega & Álvaro García Marín, 2008. "Exploring the Relationship Between R&D and Productivity: A Country-Level Study," Working Papers Central Bank of Chile 472, Central Bank of Chile. [Downloadable!]

Statistics

Access and download statistics

Did you know? There are over 16000 authors registered on RePEc Author Service.

This page was last updated on 2008-11-15.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.