We augment a Schumpeterian growth model with a public basic-research sector to examine how much a country should invest … in basic research. We find that the closer the country is to the world’s technological frontier the more the government … should invest in basic research. Basic-research expenditures are increasing with a country’s degree of openness as long as …

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 …

engine manufacturing provides a case study, and indicates the importance of anti-trust issues as an addition to the theory. …

importance of antitrust issues as an addition to the theory. …

This paper studies the impact of global factors on patterns of basic research across countries and time. We rely on the … engaging in basic research is an important explanatory variable of country's share of prizes. Scale effects imply that the … the viability of basic research about 30 years after the fact. With more recent data, we document the growing importance …

-variety growth model through horizontal innovations with a hierarchy of basic and applied research. The former extends the knowledge … base, while the latter commercializes it. Two-way spillovers reinforce the productivity of research in each sector. We … for intermediate goods grow with the same rate. Basic research is a necessary and sufficient condition for economic growth …

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 cost and … invest in basic research. Our main insight is that higher openness tends to encourage more investment in basic research which …

R&D encompasses plenty of activities which are usually summarized under the terms of basic research, applied research … and development. Although basic research is often associated with low appropriability it provides the fundamental basis … for subsequent applied research and development. Especially in the high-tech sector basic research capabilities are an …