Accelerating Innovation: National R&D Subsidies versus Foreign R&D Tax Credits
This paper examines and compares the impact on growth of government’s funding national R&D or providing a tax rate reduction for foreign investment in R&D. In an innovationbased model we show the relation between the costs of these two policies. One meaningful policy implication of our results is that, to accelerate innovation, governments should adopt a tax rate deduction for foreign R&D, rather than subsidizing national R&D, because the former is more economical and effective than the latter.
|Date of creation:||15 Jun 2007|
|Date of revision:|
|Contact details of provider:|| Web page: http://bru-unide.iscte.pt/|
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Balcao Reis, Ana, 2001. "On the welfare effects of foreign investment," Journal of International Economics, Elsevier, vol. 54(2), pages 411-427, August.
- Balasubramanyam, V N & Salisu, M & Sapsford, David, 1996.
"Foreign Direct Investment and Growth in EP and IS Countries,"
Royal Economic Society, vol. 106(434), pages 92-105, January.
- V N Balasubramanyam & M Salisu & David Sapsford., . "Foreign Direct Investment and Growth in EP and IS Countries," Working Papers ec18/94, Department of Economics, University of Lancaster.
- Elberfeld Walter & Götz Georg & Stähler Frank, 2005.
"Vertical Foreign Direct Investment, Welfare, and Employment,"
The B.E. Journal of Economic Analysis & Policy,
De Gruyter, vol. 5(1), pages 1-30, February.
- Georg Götz & Walter Elberfeld & Frank Stähler, 2002. "Vertical foreign direct investment, welfare, and employment," Vienna Economics Papers 0213, University of Vienna, Department of Economics.
- Feenstra, R.C., 1990.
"Trade And Uneven Growth,"
353, California Davis - Institute of Governmental Affairs.
- Reis, Ana Balcao, 2006. "Welfare, taxes and foreign investment," Journal of Economic Dynamics and Control, Elsevier, vol. 30(6), pages 1045-1061, June.
- Nicholas Bull, 1993. "When all the optimal dynamic taxes are zero," Working Paper Series / Economic Activity Section 137, Board of Governors of the Federal Reserve System (U.S.).
When requesting a correction, please mention this item's handle: RePEc:isc:iscwp1:ercwp0108. 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: (Henrique Monteiro)
If references are entirely missing, you can add them using this form.