Are Public and Private R&D Investments Complements or Substitutes?

We develop a general equilibrium model with heterogeneous firms à la Melitz (2003), where both the government and firms can invest into R&D to improve the country’s technological potential. A higher technological potential raises the average productivity of firms, thus implying lower consumer prices, and eventually leads to a welfare gain.

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Year of publication:	2014-05
Authors:	Bohnstedt, Anna
Institutions:	Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
Subject:	Heterogeneous firms \| public and private R&D investments \| basic research \| innovation

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Extent:	application/pdf
Series:	Ruhr Economic Papers. - ISSN 1864-4872.
Type of publication:	Book / Working Paper
Notes:	Number 0485 18 pages
Classification:	O3 - Technological Change; Research and Development ; H4 - Publicly Provided Goods
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010778656