On the impact of public policies and wage formation on business investment in research and development |
| |
| Institution: | 1. Department of Economics, Ghent University, Sint-Pietersplein 6, 9000 Ghent, Belgium;2. National Bank of Belgium, de Berlaimontlaan 3, 1000, Brussels, Belgium;1. University of Ljubljana, Faculty of Economics, Kardeljeva ploščad 17, 1000 Ljubljana, Slovenia;2. University of Primorska, Faculty of Mathematics, Natural Sciences and Information Technologies, Glagoljaška 8, 6000 Koper, Slovenia;1. The Institute of Regional Economy Problems, Russian Academy of Sciences, Russia;2. Financial Research Institute, Ministry of Finance, Russia;3. The Faculty of Economics, Saint-Petersburg State University, Russia;4. National Research University Higher School of Economics, St. Petersburg, Russia;5. Center for Quantitative Economics, University of Münster, Am Stadtgraben 9, 48143, Münster, Germany;1. INSEEC Business School, France;2. University of Lille, Office B655, 104 Avenue du Peuple Belge, Lille, 59004, France;3. IPAG Business School, IPAG LAB, France;4. EDC Paris Business School, France |
| |
| Abstract: | Against the backdrop of mediocre growth prospects in many countries, governments should do more to promote private investment in research and development (R&D). Public fiscal policies and the characteristics of wage formation are key as they affect both the incentives that firms face and their resources. This paper studies their impact at the macro level in a panel of 14 OECD countries since 1981, while we also account for the impact of unobserved common factors like the world level of knowledge. Tax incentives, government intramural expenditures on R&D, public R&D subsidies (if they are not too low nor too high) and especially investment in tertiary education, encourage business R&D investment. Wage moderation may also contribute to innovation, but only in fairly closed economies and in economies with flexible labour markets. In highly open economies with rigid labour markets, high wage pressure promotes investment in R&D. Innovation may then be the only competitive strategy for firms. |
| |
| Keywords: | R&D Technology policy Wage formation Unobserved common factors Panel cointegration E22 J30 O31 O38 O57 |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
