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On R&D and the undersupply of emerging versus mature technologies Author info | Abstract | Publisher info | Download info | Related research | Statistics Tom-Reiel Heggedal (Statistics Norway )
An important policy question is whether research and development (R&D) in new, emerging technologies should be more subsidized than R&D in other more mature technologies. In this paper I analyze if innovation externalities caused by knowledge spillovers from private firms may warrant a differentiated R&D policy. I find that R&D in emerging and mature technologies should not be subsidized equally. The reason is that R&D in the two technologies is not equally undersupplied in the market due to differences in their knowledge stocks. R&D in the mature technology should be subsidized more when the sum of the output elasticities with respect to labor and knowledge in R&D production is high, while R&D in the emerging technology should be subsidized more when the elasticities are low.
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Paper provided by Research Department of Statistics Norway in its series Discussion Papers with number
571.
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Date of creation: Dec 2008Date of revision:
Handle: RePEc:ssb:dispap:571Contact details of provider: Postal: P.O.Box 8131 Dep, N-0033 Oslo, Norway Phone: (+47) 21 09 00 00 Fax: (+47) 21 09 49 73 Email: Web page: http://www.ssb.no More information through EDIRC
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Keywords: Endogenous growth ; Innovation policy ; Technological spillovers ; Sector-specific R&D. ; Other versions of this item:
Find related papers by JEL classification: O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
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