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Otto Toivanen, Professor in Economics, Aalto University Business School.
Wednesday 21 November 2018, 13:00-14:00
WELFARE EFFECTS OF R&D SUPPORT POLICIES
â ī¸ Important: There will be a light lunch available, for those attending the seminar, in the conference reception at 12:00-13:00
- đ¤ Speaker: Otto Toivanen, Professor in Economics, Aalto University Business School.
- đ Date & Time: Wednesday 21 November 2018, 13:00 - 14:00
- đ Venue: Fadi Boustany Lecture Theatre, Cambridge Judge Business School
Questions? Contact
Emily Brown
Abstract
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.
Series This talk is part of the Economics & Policy Seminars, CJBS series.
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