Arbeitspapier
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. The government's public and firms' private investments are modelled in a three-stage game, in which the government in the first stage invests into a basic research level, and then firms conduct private R&D building on this publicly provided 'technology' in the second stage. We find that private R&D investments are hump-shaped with respect to the basic research level. For lower levels public and private investments are complements, while for higher levels they are substitutes.
- ISBN
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978-3-86788-551-5
- Sprache
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Englisch
- Erschienen in
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Series: Ruhr Economic Papers ; No. 485
- Klassifikation
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Wirtschaft
- Thema
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heterogeneous firms
public and private R&D investments
basic research
innovation
- Ereignis
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Geistige Schöpfung
- (wer)
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Bohnstedt, Anna
- Ereignis
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Veröffentlichung
- (wer)
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Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
- (wo)
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Essen
- (wann)
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2014
- DOI
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doi:10.4419/86788551
- Handle
- Letzte Aktualisierung
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10.03.2025, 11:41 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Bohnstedt, Anna
- Rheinisch-Westfälisches Institut für Wirtschaftsforschung (RWI)
Entstanden
- 2014