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• W2063710840 abstract "Empirical evidence suggests that positive externalities from R&D exceed negative ones. According to conventional wisdom, this calls for R&D subsidies. This paper develops a quality-ladder growth model with overlapping generations which evaluates the positive and normative implications of R&D subsidies and compares them with the effects of public education policy to promote R&D. Unlike standard growth models, the proposed framework accounts for the specificity of science and engineering (S&E) skills, where individuals endogenously choose the type of education, and allows for heterogeneity in individual ability. Although intertemporal knowledge spillovers are hypothesized and negative R&D externalities are absent, the analysis shows somewhat surprisingly that R&D subsidies may be detrimental to both productivity growth and welfare, in contrast to publicly provided education targeted to S&E skills. Finally, the optimal structure of public education spending on different skills is examined." @default.
• W2063710840 created "2016-06-24" @default.
• W2063710840 creator A5076562252 @default.
• W2063710840 date "2004-06-01" @default.
• W2063710840 modified "2023-09-24" @default.
• W2063710840 title "How to Promote R&D-based Growth? Public Education Expenditure on Scientists and Engineers versus R&D Subsidies" @default.
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• W2063710840 hasPublicationYear "2004" @default.
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