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Government Support for Commercial R&D: Lessons from the Israeli Experience

In: Innovation Policy and the Economy, Volume 2

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  • Manuel Trajtenberg

Abstract

Israel constitutes an interesting laboratory case of government intervention in the realm of R&D policy. The recognized scientific and technological prowess of the country was leveraged by extensive government support to commercial R&D projects. The Israeli High Tech sector has grown remarkably fast since the mid-1980s, and it is quite likely that indeed government policies significantly contributed to its success. In this paper we review in detail these policies, as well as the challenges that confront them: The design of alternative allocation schemes for R&D grants in view of a rigid budget constraint; possible ways of departing from neutrality, the conditionality of production in Israel; the difficulties in setting a policy target for R&D spending, etc.
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Suggested Citation

  • Manuel Trajtenberg, 2002. "Government Support for Commercial R&D: Lessons from the Israeli Experience," NBER Chapters, in: Innovation Policy and the Economy, Volume 2, pages 79-134, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberch:10786
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods

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