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• W2125439384 abstract "This paper examines the eect of the Research and Experimentation Tax Credit on the Chemicals Industry. The subsidy program was put into place to counteract the underinvestment in private R&D caused by firms not internalizing the benefits of technological spillovers from their research. However, the rationale ignored the impact of competition in the product market. I propose and estimate a structural dynamic oligopoly model of competition in intellectual assets to capture the impact of interactions between firms in the industry. I estimate the dynamic parameters of the model using methods from Bajari, Benkard, and Levin (2007). In the data, I observe firms that persistently invest more in research and generate more innovations than other firms that are observationally similar. I build upon previous estimators by incorporating this unobserved firm-level heterogeneity using techniques from Arcidiacono and Miller (2007). I find that increased investment in R&D by more advanced firms due to the subsidy, was largely oset" @default.
• W2125439384 created "2016-06-24" @default.
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• W2125439384 date "2007-01-01" @default.
• W2125439384 modified "2023-09-24" @default.
• W2125439384 title "R&D Competition in the Chemicals Industry." @default.
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