R&D in Developing Countries: What Should Governments Do?

J. Peter Neary

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: I consider the implications of recent research for R&D policy in developing countries. Typical new growth models, which assume free entry and no strategic behaviour by R&D producers, are less appropriate for policy guidance than strategic oligopoly models. But the latter have ambiguous implications for targeted R&D subsidies, and caution against the anti-competitive effects of research joint ventures. A better policy is to raise the economy-wide level of research expertise. This avoids the need for governments to pick winners, is less prone to capture, and dilutes the strategic disincentive to undertake R&D with unappropriable spillovers.

Keywords: R&D spillovers; R&D cooperative agreements; RJVs (Research Joint Ventures); strategic trade and industrial policy; absorptive capacity (search for similar items in EconPapers)
Date: 2000-07
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Citations: View citations in EconPapers (3)

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Working Paper: R&D in Developing Countries: What Should Governments Do? (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:cep:cepdps:dp0464

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