Gersbach, Hans; Schneider, Maik - C.E.P.R. Discussion Papers - 2015
In a two-country Schumpeterian growth model, we study the incentives for basic research investments by governments in a … globalized world. We find that a country's basic research investments increase with the country's level of human capital and … decline with its own market size. This may explain that some smaller countries invest a lot in basic research. Compared with …