R&D Spillovers and the Case for Industrial Policy in an Open Economy

Dermot Leahy and J. Peter Neary

Oxford Economic Papers, 1999, vol. 51, issue 1, 40-59

Abstract: In this paper, the authors consider the case for subsidies toward firms which generate R&D spillovers in open economies. They show that, in the presence of strategic behavior by firms, many expected results are overturned. Local R&D spillovers to other domestic firms may justify an R&D tax rather than a subsidy; R&D cooperation by local firms overinternalizes the externality and also justifies an R&D tax; and international spillovers that benefit foreign firms may justify a subsidy, even though the government cares only about the profits of home firms. Copyright 1999 by Royal Economic Society.

Date: 1999
References: Add references at CitEc
Citations: View citations in EconPapers (37)

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: R&D Spillovers and the Case for Industrial Policy in an Open Economy (1997)
Working Paper: R&D Spillovers and the Case for Industrial Policy in an Open Economy (1997)
Working Paper: R&D spillovers and the case for industrial policy in an open economy (1997)
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: https://EconPapers.repec.org/RePEc:oup:oxecpp:v:51:y:1999:i:1:p:40-59

Ordering information: This journal article can be ordered from
https://academic.oup.com/journals

Access Statistics for this article

Oxford Economic Papers is currently edited by James Forder and Francis J. Teal

More articles in Oxford Economic Papers from Oxford University Press Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK.
Bibliographic data for series maintained by Oxford University Press ().