Risky research projects are, other things being equal, intrinsically harder to monitor than those which are less risky. It is shown using agency theory that a standard cost benefit project analysis which ignores the agency problem will introduce a bias towards excessively risky projects.

FDI has received surprisingly little attention in theoretical and empirical work on openness and growth. This paper presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is novel since other endogenous growth models with...

Multinational enterprises (MNEs) are important in transmitting technology across national borders. Not only do they allow for transfer of technology within the firm, but it is also believed that they are important channels for international R&D spillovers as well. This paper analyzes empirically...

The European Strategic Program for Research in Information Technologies (ESPRIT) is by far the largest of the Research and Technological Development (RTD) Programs established by the European Commission. It is scheduled to last 15 years and has involved over 9000 organizations of various type...

The recent 'scientification' of commercial technology has brought the interface between universities and industry into sharp focus. In particular, academic entrepreneurship, i.e., the variety of ways in which academics take direct part in the commercialization of research, is widely discussed....

This paper is an extension of the Aghion and Howitt's model (1992). The new feature is that the qualification of the skilled labor force depends on the technology level in the economy. On the other hand, the R&D effort made in the economy depends upon the research sector's expectations about the...

Israel constitutes an interesting laboratory case of government intervention in the realm of R&D policy. The recognized scientific and technological prowess of the country was leveraged by extensive government support to commercial R&D projects. The Israeli High Tech sector has grown remarkably...

Scientific and technological knowledge is increasingly recognized as a keystone of economic growth and social development. This paper reviews the main components of policy reform strategies designed to increase the efficiency of investments in science and techbology, with specific reference to...