dc.contributor.author | IMPULLITI, Giammario | |
dc.date.accessioned | 2008-05-07T08:50:33Z | |
dc.date.available | 2008-05-07T08:50:33Z | |
dc.date.issued | 2008 | |
dc.identifier.issn | 1830-7728 | |
dc.identifier.uri | https://hdl.handle.net/1814/8528 | |
dc.description.abstract | The geographical distribution of R&D investment changes dramatically in the 1970s
and 1980s. In the early 1970s U.S. firms are the uncontested world leaders in R&D
investment in most manufacturing sectors. Later, led by Japan and Europe, foreign firms
start challenging American R&D leadership in many sectors of the economy. In this
period of increasing competition we also observe a substantial increase in the U.S. R&D
subsidy. In a version of the multi-country quality ladder growth model I study the
effects of foreign R&D competition on domestic welfare and on the optimal R&D
subsidy. I build a new empirical index of international R&D rivalry that can be used to
perform quantitative analysis in this type of frameworks. In a calibrated version of the
model I focus on the period 1979-1991 and perform the following quantitative
exercises: first, I evaluate the quantitative effects of the observed increase in foreign
R&D competition on U.S. welfare. I find that the positive growth effect and the
negative business-stealing effect of foreign competition on U.S. welfare substantially
balance each other, and the overall welfare effect of competition is negligible - less then
1 percent of per-capita consumption. Moreover, using estimates of the effective U.S.
R&D subsidy rate, I compute the distance from optimality of the observed subsidy at
each level of competition. I find that international competition increases the optimal
subsidy and that, surprisingly, the U.S. subsidy observed in the data is fairly close to the
optimal subsidy. | en |
dc.format.mimetype | application/pdf | |
dc.language.iso | en | en |
dc.publisher | European University Institute | |
dc.relation.ispartofseries | EUI MWP | en |
dc.relation.ispartofseries | 2008/14 | en |
dc.rights | info:eu-repo/semantics/openAccess | |
dc.subject | international competition | en |
dc.subject | R&D-driven growth theory | en |
dc.subject | strategic R&D policy | en |
dc.subject | international trade and growth | en |
dc.subject | F12 | en |
dc.subject | F13 | en |
dc.subject | 038 | en |
dc.subject | O41 | en |
dc.title | International Competition and U.S. R&D Subsidies: A Quantitative Welfare Analysis | en |
dc.type | Working Paper | en |
dc.neeo.contributor | IMPULLITI|Giammario|aut| | |
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