dc.contributor.author | Bye, Brita | |
dc.contributor.author | Fæhn, Taran | |
dc.contributor.author | Heggedal, Tom-Reiel | |
dc.date.accessioned | 2011-11-12T18:08:26Z | |
dc.date.available | 2011-11-12T18:08:26Z | |
dc.date.issued | 2007 | |
dc.identifier.issn | 1892-753x | |
dc.identifier.uri | http://hdl.handle.net/11250/180195 | |
dc.description.abstract | We explore how innovation incentives in a small, open economy should be designed in order to
achieve the highest welfare and growth, by means of a computable general equilibrium model with
R&D-driven endogenous technological change embodied in varieties of capital. We study policy
alternatives targeted towards R&D, capital varieties formation, and domestic investments in capital
varieties. Subsidising domestic investments, thereby excluding stimuli to world market deliveries,
generates less R&D, capital formation, economic growth, and welfare, than do the other alternatives,
reflecting that the domestic market for capital varieties is limited. Directing support to R&D rather
than to capital formation generates stronger economic growth, a higher number of patents and
capital varieties, and a higher share of R&D in total production. However, it costs in terms of lower
production within each firm, where presence of sunk patent costs and mark-ups result in efficiency
losses. The welfare result is, thus, slightly lower.
Keywords: Applied general equilibrium, Endogenous growth, Research and Development | |
dc.description.sponsorship | Financial support
from the Norwegian Research Council programmes SAMSTEMT and RENERGI | no_NO |
dc.language.iso | eng | no_NO |
dc.publisher | Statistics Norway, Research Department | no_NO |
dc.relation.ispartofseries | Discussion Papers;No. 510 | |
dc.subject | Endogenous growth | no_NO |
dc.subject | Research and Development | no_NO |
dc.subject | Computable general equilibrium model (CGE-model) | no_NO |
dc.subject | Welfare | no_NO |
dc.subject | JEL classification: C68 | no_NO |
dc.subject | JEL classification: E62 | no_NO |
dc.subject | JEL classification: H32 | no_NO |
dc.subject | JEL classification: O38 | no_NO |
dc.subject | JEL classification: O41 | no_NO |
dc.title | Welfare and growth impacts of innovation policies in a small, open economy. An applied general equilibrium analysis | no_NO |
dc.type | Working paper | no_NO |
dc.subject.nsi | VDP::Social science: 200::Economics: 210::Economics: 212 | no_NO |
dc.source.pagenumber | 36 s. | no_NO |