 Governments and the DecentralizationR. Lacroix and Fernand Martin Cahiers de recherche from Universite de Montreal, Departement de sciences economiques Abstract: The Purpose of This Article Is to Show How Costs and Benefits of Geographical Decentralization of R&D Can Be Identified and Compared. the Benefits for the Region That Receives R&D Activities Are Studied in Section 1. They Stem From the Short-Run Multiplier Effect, the Amelioration of Human Capital and the Possible Modernization of the Local Industrial Structure. on the Cost Side Examined in Section 2, the Observable Impacts of the Decentralization of R&D Concern the Loss of Returns to Scale and of the Production of the R&D Output. It Is Shown, in Section 3, That the Flows of Costs and Benefits Must Be Discounted by the Social Cost of Capital. the Main Conclusion of This Article Is That the Decentralization of R&D in a Large Sparsely Populated Country Entails Social Cost and Would Weaken Its Competitive Position in World Commerce. on the Other Hand, the Issue of Decentralization Is More Crucial for Small Countries (In Terms of Population and Economic Size) Than for Large Ones, Like the U.S., Where Critical Masses of Research Efforts Cna Be Simulataneously Attained in Many Fields and in Many Places. Keywords: Cost-Benefit Analysis; Economies of Scale; Regional Analysis; Research and Develoent; Regional Economy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:mtl:montde:8728 Access Statistics for this paper More papers in Cahiers de recherche from Universite de Montreal, Departement de sciences economiques Contact information at EDIRC. |
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