WELFARE EFFECTS OF R&D SUPPORT POLICIES

Add to your list(s) Download to your calendar using vCal

• Otto Toivanen, Professor in Economics, Aalto University Business School.
• Wednesday 21 November 2018, 13:00-14:00
• Fadi Boustany Lecture Theatre, Cambridge Judge Business School.

If you have a question about this talk, please contact Emily Brown.

There will be a light lunch available, for those attending the seminar, in the conference reception at 12:00-13:00

We conduct a welfare analysis of R&D subsidies and tax credits using a model of innovation policy incorporating externalities, limited R&D participation and financial market imperfections.

We estimate the model using R&D project level data from Finland. The optimal R&D tax credit rate (0.24) is lower than the average R&D subsidy rate (0.36).

The intensive, not the extensive margin of R&D is important for policy. Tax credits and subsidies increase R&D investments and spillovers compared to laissez-faire but to levels below the first best. R&D support policies don’t improve welfare.

This talk is part of the Economics & Policy Seminars, CJBS series.

This talk is included in these lists:

• Economics & Policy Seminars, CJBS
• Fadi Boustany Lecture Theatre, Cambridge Judge Business School

Note that ex-directory lists are not shown.