Public R&D policies and cost behavior of the US manufacturing industries

Theofanis P. Mamuneas, M. Ishaq Nadiri

    Research output: Contribution to journalArticle

    Abstract

    This paper estimates and evaluates the contribution of R&D tax incentives and publicly financed R&D investment policies in promoting the growth of output and privately funded R&D investment in US manufacturing industries. Publicly financed R&D induces cost savings but crowds out privately financed R&D investment, while the incremental R&D tax credit and immediate deductibility provision of R&D expenditures have a significant impact on privately financed R&D investment. The optimal mix of both instruments is an important element for sustaining a balanced growth in output and productivity in the manufacturing sector.

    Original languageEnglish (US)
    Pages (from-to)57-81
    Number of pages25
    JournalJournal of Public Economics
    Volume63
    Issue number1
    DOIs
    StatePublished - Dec 1996

    Keywords

    • Productivity
    • R&D expenditures
    • Technological spillovers

    ASJC Scopus subject areas

    • Finance
    • Economics and Econometrics

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