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

Theofanis P. Mamuneas; M. Ishaq Nadiri

doi:10.1016/S0047-2727(96)01588-5

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

Theofanis P. Mamuneas, M. Ishaq Nadiri

Research output: Contribution to journal › Article › peer-review

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 language	English (US)
Pages (from-to)	57-81
Number of pages	25
Journal	Journal of Public Economics
Volume	63
Issue number	1
DOIs	https://doi.org/10.1016/S0047-2727(96)01588-5
State	Published - Dec 1996

Keywords

Productivity
R&D expenditures
Technological spillovers

ASJC Scopus subject areas

Finance
Economics and Econometrics

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10.1016/S0047-2727(96)01588-5

Cite this

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title = "Public R&D policies and cost behavior of the US manufacturing industries",

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.",

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

Abstract

Keywords

ASJC Scopus subject areas

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