Gersbach, Hans; Schneider, Maik; Schneller, Olivier - In: Journal of Economic Growth 18 (2013) 1, pp. 33-68
We study a model where economic growth is fueled by public basic-research investment and the importation of leading … technology from foreign countries. In each period, the government chooses the amount of basic research, balancing the costs and … invest in basic research. Our main insight is that higher openness tends to encourage more investment in basic research …