R&D Subsidies and the Surplus Appropriability Problem

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R&D Subsidies and the Surplus Appropriability Problem

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dc.contributor.author Sørensen, Anders en_US
dc.date.accessioned 2009-02-04T10:27:41Z
dc.date.available 2009-02-04T10:27:41Z
dc.date.issued 2005-11-16T00:00:00Z en_US
dc.identifier.uri http://hdl.handle.net/10398/7541
dc.description.abstract It may be optimal from a welfare perspective to use R&D subsidies when the source of R&D distortions originates from the surplus appropriability problem and technological spillovers in the form of knowledge spillovers, creative destruction, and duplication externalities are absent. Hence, R&D subsidies may constitute the optimal policy even when subsidies directly targeted on monopoly pricing could be applied. The result holds when dynamic effects are important relative to static effects and when governments spending is restricted. The latter characteristic arises when a government is unable or unwilling to use the level of spending required to implement the optimum policy. The argument is developed in a semi-endogenous growth model where the only distortion is monopoly pricing of intermediate goods. Keywords: R&D, policy instruments, welfare, market power JEL: O38, O41 en_US
dc.format.extent 31 s. en_US
dc.language eng en_US
dc.relation.ispartofseries Working paper;2005-017 en_US
dc.title R&D Subsidies and the Surplus Appropriability Problem en_US
dc.type wp en_US
dc.accessionstatus modt05nov16 miel en_US
dc.contributor.corporation Copenhagen Business School. CBS en_US
dc.contributor.department Økonomisk Institut en_US
dc.contributor.departmentshort ECON en_US
dc.contributor.departmentuk Department of Economics en_US
dc.contributor.departmentukshort ECON en_US
dc.idnumber x656503938 en_US
dc.publisher.city København en_US
dc.publisher.year 2005 en_US


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