Public R & D Policies and Cost Behavior of the US Manufacturing IndustriesThis paper estimates and evaluates the contributions of R & D tax incentives and publicly financed R & D investment policies in promoting growth of output and privately funded R & D investment in US manufacturing industries. Publicly financed R & D induces cost savings but crowds out privately-financed R & D investment while the incremental R & D tax credit and the immediate deductibility provision of R & D expenditures have a significant impact on privately financed R & D investment. The optimal mix of both instruments is an important element for sustaining a balanced growth in output and productivity in the manufacturing sector. |
From inside the book
Results 1-3 of 12
Page 15
... internal and external public R & D , the marginal cost reduction of internal publicly financed R & D is substantially higher than the external one . For instance , in chemical industry ( 28 ) , in 1982 , the cost elasticity of internal ...
... internal and external public R & D , the marginal cost reduction of internal publicly financed R & D is substantially higher than the external one . For instance , in chemical industry ( 28 ) , in 1982 , the cost elasticity of internal ...
Page 45
... Internal -0.0038 -0.0045 -0.0159 0.0468 -0.0026 ( 0.0013 ) ( 0.0017 ) ( 0.0033 ) ( 0.0202 ) ( 0.0014 ) External -0.2168 -0.1935 0.1836 -1.8003 -0.2582 ( 0.0586 ) ( 0.0609 ) ( 0.0723 ) ( 0.3729 ) ( 0.0589 ) Total -0.2206 -0.1979 0.1677 ...
... Internal -0.0038 -0.0045 -0.0159 0.0468 -0.0026 ( 0.0013 ) ( 0.0017 ) ( 0.0033 ) ( 0.0202 ) ( 0.0014 ) External -0.2168 -0.1935 0.1836 -1.8003 -0.2582 ( 0.0586 ) ( 0.0609 ) ( 0.0723 ) ( 0.3729 ) ( 0.0589 ) Total -0.2206 -0.1979 0.1677 ...
Page 46
... Internal -0.0221 -0.0488 0.0682 -0.0087 ( 0.0082 ) ( 0.0106 ) ( 0.0377 ) ( 0.0082 ) External -0.1348 0.0144 -0.6172 ( 0.0592 ) ( 0.0606 ) ( 0.1293 ) Total -0.1569 -0.0344 -0.5489 ( 0.0607 ) ( 0.0623 ) ( 0.1290 ) 333 Internal -0.0442 ...
... Internal -0.0221 -0.0488 0.0682 -0.0087 ( 0.0082 ) ( 0.0106 ) ( 0.0377 ) ( 0.0082 ) External -0.1348 0.0144 -0.6172 ( 0.0592 ) ( 0.0606 ) ( 0.1293 ) Total -0.1569 -0.0344 -0.5489 ( 0.0607 ) ( 0.0623 ) ( 0.1290 ) 333 Internal -0.0442 ...
Common terms and phrases
additional R&D expenditures after-tax cost American Economic Review Bernstein and Nadiri billion company-financed R&D capital cost function Cost Labor Physical depreciation rate effect of publicly Effects of R&D electrical equipment 36 estimates external publicly financed Federal financed R&D capital financed R&D performed firms G₁ Griliches gross output Hessian matrix incremental R&D tax input demands intermediate inputs Internal Jorgenson labor and intermediate low R&D intensive Mamuneas manufacturing industries manufacturing sector marginal benefits marginal cost reduction Martin Feldstein Mean Std Minimum Maximum Multifactor Productivity NBER Working Papers Number output parameters perpetual inventory Phys Physical Capital R&D post-tax price elasticities price of company-financed price of R&D Productivity Growth public R&D publicly financed R&D publicly-financed R&D capital publicly-funded R&D R&D capital stocks R&D intensive industries R&D Spending R&D tax credit R&D tax incentives R&D Tax Policy Rates of Return rental price Research and Development returns to scale Statistics Technology Xavier Sala-i-Martin