R&D Policy with Layers of Economic Integration

50 Pages Posted: 16 Mar 2001

See all articles by Maxim Engers

Maxim Engers

University of Virginia - Department of Economics

Shannon K. Mitchell

Virginia Commonwealth University - School of Business - Department of Economics

Date Written: February 2001

Abstract

Domestic R&D policy is examined in the context of four successive layers of international integration: (a) trade in intermediate and final goods, (b) trade in technologies, (c) international R&D spillovers and (d) internationally-coordinated R&D policy. Positive domestic R&D spillovers are assumed throughout. A subsidy improves welfare when there is no trade in technologies or when technologies are traded but R&D policy is internationally coordinated. However, at intermediate degrees of international integration an R&D tax or subsidy might improve welfare. Trade in technologies introduces terms-of-trade effects that increase welfare for net technology importers but reduce it for net exporters.

Keywords: R&D Subsidies, International Spillovers, International Integration

JEL Classification: O38, F15, D62

Suggested Citation

Engers, Maxim P. and Mitchell, Shannon K., R&D Policy with Layers of Economic Integration (February 2001). Available at SSRN: https://ssrn.com/abstract=261394 or http://dx.doi.org/10.2139/ssrn.261394

Maxim P. Engers (Contact Author)

University of Virginia - Department of Economics ( email )

P.O. Box 400182
Charlottesville, VA 22904-4182
United States
804-924-3130 (Phone)
804-924-7659 (Fax)

Shannon K. Mitchell

Virginia Commonwealth University - School of Business - Department of Economics ( email )

Box 844000
Richmond, VA 23284-4000
United States
804-828-7142 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
110
Abstract Views
1,131
Rank
447,736
PlumX Metrics