R&D subsidies as well as tariffs/export subsidies are often argued to promote economic growth. This paper investigates such unterventions in a model of endogenous growth in which (a) skills are acquired through time spent in learning and 8b) the engine of long-run growth is market-driven R&D...

The role of the education in economic development is addressed in an endogenous growth model with R&D. When human capital is below a threshold level, the model predicts that it is optimal to accumulate skills as the only growth generating activity, whereas both innovation activities and...