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Public R&D Policies and Cost Behavior of the US Manufacturing Industries

Listed author(s):
  • Theofanis P. Mamuneas
  • M. Ishaq Nadiri

This paper estimates and evaluates the contributions of R&D tax incentives and publicly financed R&D investment policies in promoting growth of output and privately funded R&D investment in US manufacturing industries. Publicly financed R&D induces cost savings but crowds out privately-financed R&D investment while the incremental R&D tax credit and the immediate deductibility provision of R&D expenditures have a significant impact on privately financed R&D investment. The optimal mix of both instruments is an important element for sustaining a balanced growth in output and productivity in the manufacturing sector.

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File URL: http://www.nber.org/papers/w5059.pdf
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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 5059.

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Date of creation: Mar 1995
Publication status: published as Journal of Public Economics, vol. 63, no.1 (Dec 1996): 57-81.
Handle: RePEc:nbr:nberwo:5059
Note: EFG PR
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