Cookies?
Library Header Image
LSE Research Online LSE Library Services

R&D spillovers and the case for industrial policy in an open economy

Leahy, D. and Neary, J. P. (1997) R&D spillovers and the case for industrial policy in an open economy. CEPDP, 345. Centre for Economic Performance, London School of Economics and Political Science, London, UK. ISBN 0853284377

[img]
Preview
PDF
Download (80Kb) | Preview

Abstract

In this paper we consider the case for subsidies towards firms which generate R&D spillovers in open economies. We show that many expected results are overturned in the presence of strategic behaviour by firms. Local R&D spillovers to other domestic firms may justify an R&D tax rather than a subsidy; R&D cooperation by local firms over-internalises the externality and also justifies an R&D tax; and international spillovers which benefit foreign firms may justify a subsidy, even though the government cares only about the profits of home firms.

Item Type: Monograph (Discussion Paper)
Official URL: http://cep.lse.ac.uk
Additional Information: © 1997 the authors
Library of Congress subject classification: H Social Sciences > HD Industries. Land use. Labor
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Rights: http://www.lse.ac.uk/library/usingTheLibrary/academicSupport/OA/depositYourResearch.aspx
Identification Number: 345
Date Deposited: 01 Aug 2008 14:48
URL: http://eprints.lse.ac.uk/20342/

Actions (login required)

Record administration - authorised staff only Record administration - authorised staff only

Downloads

Downloads per month over past year

View more statistics