The paper presents evidence that in Europe, production of high-tech goods is attracted to large markets, while research and development (R&D) activities tend to be located away from them. In order to explain this phenomenon, the authors develop a two-country general equilibrium model where firms make separate choices about the location of R&D and high-tech production.
The authors study the optimal policies of research and development in the context of a resource-exploiting economy, distinguishing two cases: non-renewable resources and renewable resources.
The paper analyzes the incentives for governments to impose export subsidies when firms invest in a cost saving technology before market competition. The authors find that for sufficiently cost effective research and development governments subsidize exports independently of the mode of competition. This suggests that export subsidies are more robust to the type of the market competition than implied by the recent literature.
The authors develop an economic growth model in which both the research and development resources to develop new product applications and the market structure of consumption goods manufacturing are determined endogenously. Findings suggest that in order to minimize the strategic delay of inaugural applications, legal patent lengths should be shorter in industries where barriers to entry are relatively low.
The authors develop a growth model with endogenous innovation and accumulation of high-tech and low-tech human capital. The models are then extended by explicitly introducing two different types of human capital and a services sector, characterized by being relatively more intensive in low-tech human capital.
The paper analyzes the effect of different types of incentives in a standard model with physical capital, human capital and R&D. In particular, the economy evolves from a neoclassical physical capital model to a Lucas human capital model and finally to an R&D model.
The paper considers a framework where lagging countries benefit from imports of embodied medical technology or from the flow of ideas resulting from research and development done by countries at the frontier. Using a cross-section of 73 importing countries, the authors show that medical technology diffusion is an important contributor to improved health measured by life expectancy and mortality rates.
According to the authors research, The U.S. appears to be a net loser in terms of international research and development spillovers. The interpretation is that when competitors ‘catch-up’ technologically, they challenge U.S. market shares and investments worldwide, which has implications for U.S. productivity.
The paper develops a quality-ladder growth model with overlapping generations, which evaluates the positive and normative implications of research and development (R&D) subsidies and compares them with the effects of public education policy to promote R&D.
The authors investigate how different types of merger affect input prices, research levels and equilibrium profits in vertical market structures when there is research activity in the upstream market that spills over to the downstream retailers.