IDEAS home Printed from https://ideas.repec.org/a/rje/bellje/v14y1983iautumnp551-561.html
   My bibliography  Save this article

Effects of Government R&D on Private R&D Investment and Productivity: A Macroeconomic Analysis

Author

Listed:
  • David M. Levy
  • Nestor E. Terleckyj

Abstract

This article examines the effects of different government expenditures for R&D on private R&D spending and on private sector productivity. Results are consistent with the hypothesis that $1.00 of government contract R&D performed in industry induced about $.27 of private R&D expenditure. Weak indications are obtained that government-funded R&D done in government and in universities also influenced private R&D positively. Overhead reimbursement of government contractors for R&D, however, apparently reduced private R&D outlays. A positive effect of the stock of government contract R&D on private sector productivity is estimated, but it is smaller and statistically weaker than the effect of private R&D capital.

Suggested Citation

  • David M. Levy & Nestor E. Terleckyj, 1983. "Effects of Government R&D on Private R&D Investment and Productivity: A Macroeconomic Analysis," Bell Journal of Economics, The RAND Corporation, vol. 14(2), pages 551-561, Autumn.
  • Handle: RePEc:rje:bellje:v:14:y:1983:i:autumn:p:551-561
    as

    Download full text from publisher

    File URL: http://links.jstor.org/sici?sici=0361-915X%28198323%2914%3A2%3C551%3AEOGROP%3E2.0.CO%3B2-B&origin=repec
    File Function: full text
    Download Restriction: Access to full text is restricted to JSTOR subscribers. See http://www.jstor.org for details.

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. José Ángel Zúñiga-Vicente & César Alonso-Borrego & Francisco J. Forcadell & José I. Galán, 2014. "Assessing The Effect Of Public Subsidies On Firm R&D Investment: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 28(1), pages 36-67, February.
    2. Mamuneas, Theofanis P. & Ishaq Nadiri, M., 1996. "Public R&D policies and cost behavior of the US manufacturing industries," Journal of Public Economics, Elsevier, vol. 63(1), pages 57-81, December.
    3. Brautzsch, Hans-Ulrich & Günther, Jutta & Loose, Brigitte & Ludwig, Udo & Nulsch, Nicole, 2015. "Can R&D subsidies counteract the economic crisis? – Macroeconomic effects in Germany," Research Policy, Elsevier, vol. 44(3), pages 623-633.
    4. Martinez-Noya, Andrea & Garcia-Canal, Esteban & Guillen, Mauro F., 2012. "International R&D service outsourcing by technology-intensive firms: Whether and where?," Journal of International Management, Elsevier, vol. 18(1), pages 18-37.
    5. Piekkola, Hannu, 2005. "Public Funding of R&D and Growth: Firm-level Evidence from Finland," Discussion Papers 996, The Research Institute of the Finnish Economy.
    6. Bergman, Karin, 2011. "Productivity Effects of Privately and Publicly Funded R&D," Working Papers 2011:28, Lund University, Department of Economics.
    7. Montmartin, Benjamin & Herrera, Marcos, 2015. "Internal and external effects of R&D subsidies and fiscal incentives: Empirical evidence using spatial dynamic panel models," Research Policy, Elsevier, vol. 44(5), pages 1065-1079.
    8. 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.
    9. Wolff, Guntram B. & Reinthaler, Volker, 2008. "The effectiveness of subsidies revisited: Accounting for wage and employment effects in business R&D," Research Policy, Elsevier, vol. 37(8), pages 1403-1412, September.
    10. repec:eco:journ2:2017-04-17 is not listed on IDEAS
    11. Mamuneas, Theofanis P., 1999. "Spillovers from publicly financed R&D capital in high-tech industries," International Journal of Industrial Organization, Elsevier, vol. 17(2), pages 215-239, February.
    12. Pardey, Philip G. & Craig, Barbara J., 1987. "Dynamics Of The Agricultural Research And Output Relationship," Staff Papers 13515, University of Minnesota, Department of Applied Economics.
    13. Elisa Barbieri & Roberto Iorio & Giuseppe Lubrano Lavadera, 2010. "Incentivi alla ricerca e sviluppo in Italia: una indagine sugli effetti della Legge 46/82," Working Papers 1003, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
    14. Cho, Jaemin & Lee, Jaeho, 2013. "The venture capital certification role in R&D: Evidence from IPO underpricing in Korea," Pacific-Basin Finance Journal, Elsevier, vol. 23(C), pages 83-108.
    15. Wojciech Grabowski & Krzysztof Szczygielski & M. Teoman Pamukçu & Sinan Tandogan, 2013. "Does Government Support for Private Innovation Matter? Firm Level Evidence from Turkey and Poland," CASE Network E-briefs 3, CASE-Center for Social and Economic Research.
    16. Kim, Suwon & Nam, Chan-gi & Lee, Sangwoo & Kim, Seongcheol, 2017. "A public R&D resource allocation model for 5G mobile industry in Korea," 28th European Regional ITS Conference, Passau 2017 169472, International Telecommunications Society (ITS).
    17. Reiljan, Janno & Paltser, Ingra, 2013. "The implementation of research and development policy in European and Asian countries," Discourses in Social Market Economy 2013-03, OrdnungsPolitisches Portal (OPO).
    18. Josh Lerner, 1996. "The Government as Venture Capitalist: The Long-Run Effects of the SBIR Program," NBER Working Papers 5753, National Bureau of Economic Research, Inc.
    19. Mowery, David C., 2010. "Military R&D and Innovation," Handbook of the Economics of Innovation, Elsevier.
    20. repec:bla:ecinqu:v:55:y:2017:i:2:p:825-842 is not listed on IDEAS
    21. Clarysse, Bart & Wright, Mike & Mustar, Philippe, 2009. "Behavioural additionality of R&D subsidies: A learning perspective," Research Policy, Elsevier, vol. 38(10), pages 1517-1533, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rje:bellje:v:14:y:1983:i:autumn:p:551-561. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (). General contact details of provider: https://www.rje.org .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.