Internal rates of return for public R&D from VECM estimates for 17 OECD countries

Thomas Ziesemer ()

No 2023-026, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: In this paper we evaluate vector-error-correction model (VECM) estimations and simulations of a companion paper to show (i) internal rates of return to public R&D shocks of 17 OECD countries, (ii) the related payback periods, gain/GDP ratios, and discounted (at 4%) net present values, (iii) the underlying effects of public R&D shocks on domestic and foreign private and public R&D stocks. 14 countries show high internal rates of return from positive public R&D shocks if projects are stopped when gains get negative. Three countries show crowding out effects and require (initial) reductions of public R&D before showing positive results through crowding in of private R&D.

JEL-codes: H43 H54 O32 O47 (search for similar items in EconPapers)
Date: 2023-07-19
New Economics Papers: this item is included in nep-ino, nep-pbe and nep-ppm
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https://cris.maastrichtuniversity.nl/ws/files/144090711/wp2023-026.pdf (application/pdf)

Related works:
Journal Article: Internal rates of return for public R&D from VECM estimates for 17 OECD Countries (2024)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2023026

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