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Public science vs. mission-oriented policies in long-run growth: An agent-based model

Author

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  • Andrea Borsato

    (UniBg - Università degli Studi di Bergamo = University of Bergamo, BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • André Lorentz

    (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

Abstract

This paper offers a contribution to the literature on science policies and on the possible trade-off between broad science-technology policies and mission-oriented programs. We develop a multi-country, multi-sectoral agentbased model that represents a small-scale monetary union. Findings are threefold. Firstly, symmetric science policies from governments significantly reduce cross-country growth divergence. Secondly, even if economic growth is largely driven by the sectors with absolute advantages, having some flow of open science investments is sufficient for the other industries to survive and innovate. Thirdly, science policy limits monopolistic tendencies and reduces income inequality. Yet, the working of the model suggests that supply-side science policies should be paired with demand-side policies to meet grand societal challenges.

Suggested Citation

  • Andrea Borsato & André Lorentz, 2025. "Public science vs. mission-oriented policies in long-run growth: An agent-based model," Post-Print hal-05092674, HAL.
    • Handle: RePEc:hal:journl:hal-05092674
    DOI: 10.1016/j.strueco.2025.03.001
    Note: View the original document on HAL open archive server: https://hal.science/hal-05092674v1
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