Back to Basics: Basic Research Spillovers, Innovation Policy and Growth
By Ufuk Akcigit, Douglas Hanley, N. Serrano-Velarde. The Review of Economic Studies, 2013
174 citations recorded by the source corpus.
This article introduces a general equilibrium model of endogenous technical change through basic and applied research. Basic research differs from applied research in the nature and the magnitude of the generated spillovers. We propose a novel way of empirically identifying these spillovers and embed them in a framework with private firms and a public research sector. After characterizing the equilibrium, we estimate our model using micro-level data on research expenditures by French firms. Our key finding is that uniform research subsidies can accentuate the dynamic misallocation in the economy by oversubsidizing applied research. Policies geared towards public basic research and its interaction with the private sector are significantly welfare-improving.
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/d5f30b3243276a95c1e5c5729fde015c2d1bb660
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In Economics and Econometrics
- John Van Reenen
- Nicholas Bloom
- Michael Webb
- David H. Autor
- Daron Acemoglu
- Philippe Aghion
- Raffaella Sadun
- Efrem Castelnuovo
Citations in the corpus
- Are Ideas Getting Harder to Find? (2020, background): “∗We are grateful to Daron Acemoglu, Ufuk Akcigit, Michele Boldrin, Pete Klenow, Peter KruseAndersen, Rachel Ngai, Pietro Peretto, Unni Pillai, John Seater, Chris Tonetti, and participants at the CEPR Macroeconomics and Growth Conference, the Rimini Conference on Economics and Finance, and the NBER M”