Gersbach, Hans; Schneider, Maik T. - 2013 - This version: February 2013
In this paper we study the incentives for basic-research investments by governments in a globalized world. For this … purpose, we develop a two-country Schumpeterian growth model in which each country chooses its basic-research investments. We … find that a country's basic-research investments increase with the country's level of human capital and decline with its …