Economics at your fingertips  

The long-run growth effects of R&D policy

Antonio Minniti () and Francesco Venturini ()

Research Policy, 2017, vol. 46, issue 1, 316-326

Abstract: We assess the long-run growth effects of public policies to business R&D using data for US manufacturing industries and taking Schumpeterian growth theory as guideline. Our analysis indicates that R&D policy in the form of R&D tax credits fosters the rate of productivity growth over the long-term horizon. This effect is quantitatively important: increasing R&D tax credits by 10% raises the growth rate of labour productivity by 0.4% per year. We show that our findings are robust to controlling for several policy instruments, growth determinants and econometric issues. Moreover, the overall evidence is consistent with the predictions of second-generation fully-endogenous growth models.

Keywords: Schumpeterian growth theory; Productivity growth; R&D tax credits; US manufacturing industries (search for similar items in EconPapers)
JEL-codes: E10 L16 O31 O40 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray

More articles in Research Policy from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-09-19
Handle: RePEc:eee:respol:v:46:y:2017:i:1:p:316-326