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The Long-Run Growth Effects of R&D Subsidies

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  • Segerstrom, Paul S

Abstract

This article presents a generalized version of Howitt's (1999) model of R&D-driven growth without scale effects and a complete characterization of the long-run growth effects of R&D subsidies. R&D subsidies can either promote or retard long-run economic growth, and surprisingly, the growth-retarding outcome occurs for a wide range of plausible parameter values. This article also presents a new intuitive explanation for why R&D subsidies can have long-run growth effects (both positive and negative). Copyright 2000 by Kluwer Academic Publishers

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  • Segerstrom, Paul S, 2000. "The Long-Run Growth Effects of R&D Subsidies," Journal of Economic Growth, Springer, vol. 5(3), pages 277-305, September.
  • Handle: RePEc:kap:jecgro:v:5:y:2000:i:3:p:277-305
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    More about this item

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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