Takalo, Tuomas; Tanayama, Tanja; Toivanen, Otto - EconWPA - 2005
We develop a new method to estimate the returns to R&D, their distribution, and their determinants. We model a … social returns to R&D. The model yields a restriction on the application equation that helps identify the parameters of the … of R&D subsidies. We find that larger firms have higher marginal profitability of R&D. Rates of return on R&D are high …