R&D in developing countries: what should governments do?

J. Peter Neary

No 199927, Working Papers from School of Economics, University College Dublin

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; Research Joint Ventures; Strategic trade and industrial policy; Absorptive capacity; Developing countries--Economic policy; Research, Industrial--Developing countries; Industrial productivity--Developing countries; Research and development partnership--Developing countries; Absorptive capacity (Economics) (search for similar items in EconPapers)
JEL-codes: F12 F13 O31 (search for similar items in EconPapers)
Date: 1999-11
References: Add references at CitEc
Citations: View citations in EconPapers (1)

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http://hdl.handle.net/10197/3042 First version, 1999 (application/pdf)

Related works:
Working Paper: R&D in Developing Countries: What Should Governments Do? (2000)
Working Paper: R&D in Developing Countries: What Should Governments Do? (1999)
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Persistent link: https://EconPapers.repec.org/RePEc:ucn:wpaper:199927

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