Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence

Paul David, Bronwyn Hall and Andrew A. Toole

No 7373, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Is public R&D spending complementary and thus "additional" to private R&D spending, or does it substitute for and tend to "crowd out" private R&D? Conflicting answers are given to this question. We survey the body of available economectric evidence accumulated over the past 35 years. A framework for analysis of the problem i is developed to help organize and summarize the findings of econometric studies based on time series and cross-section data from various levels of aggregation (laboratory, firm, industry, country). The findings overall are ambivalent and the existing literature as as a whole is subject to the criticim that the nature of the "experiment(s)" that the investigators envisage is not adequately specified. We conclude by offering suggestions for improving future empirical research on this issue.

JEL-codes: O30 O38 (search for similar items in EconPapers)
Date: 1999-10
New Economics Papers: this item is included in nep-agr, nep-dev, nep-ind, nep-pbe, nep-pub and nep-tid
Note: PR
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Citations: View citations in EconPapers (28)

Published as Research Policy, Vol. 29 (May 2000).

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Related works:
Working Paper: Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence (2005)
Journal Article: Is public R&D a complement or substitute for private R&D? A review of the econometric evidence (2000)
Working Paper: Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence (2000)
Working Paper: Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence (1999)
Working Paper: Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence (1999)
Working Paper: Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence (1999)
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