Heart of Darkness: Modeling Public-Private Funding Interactions Inside the R&D Black Box

Paul David and Bronwyn Hall

Public Economics from University Library of Munich, Germany

Abstract: This paper is a first step toward closing the analytical gap in the extensive literature on the results of interactions between public and private R&D expenditures, and their joint effects on the economy. Earlier studies frequently report contradictory estimates of the response of company financed R&D to changes in the level and nature of public R&D expenditure. A major cause of "inconsistencies" in the empirical literature is the failure to recognize key differences among the various policy "experiments" being considered depending upon the economy in which they are embedded, and the type of public sector R&D spending that is contemplated. Using a simple, stylized structural model, we identify the main channels of impact of public R&D and characterize the various effects, distinguishing between short-run and long-run impacts that would show up in simple regression analyses of nominal public and private R&D expenditure variables. We offer interpretations that shed light on recent cross-section and panel data findings at both high (i.e. national) and low (specific technology area) levels of aggregation.

JEL-codes: H41 H42 O31 O38 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2001-01-02
New Economics Papers: this item is included in nep-tid
Note: 29 pages Acrobat Acrobat.pdf
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://econwpa.ub.uni-muenchen.de/econ-wp/pe/papers/0012/0012001.pdf (application/pdf)

Related works:
Journal Article: Heart of darkness: modeling public-private funding interactions inside the R&D black box (2000)
Working Paper: Heart of Darkness: Modeling Public-Private Funding Interactions Inside the R&D Black Box (2000)
Working Paper: Heart of Darkness: Modeling Public-Private Funding Interactions Inside the R&D Black Box (2000)
Working Paper: Heart of Darkness: Modeling Public-Private Funding Interactions Inside the R&D Black Box (2000)
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Persistent link: https://EconPapers.repec.org/RePEc:wpa:wuwppe:0012001

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