Public R&D Policies and Cost Behavior of the US Manufacturing IndustriesTheofanis P. Mamuneas, M. Ishaq Nadiri
NBER Working Paper No. 5059 (Also Reprint No. r2135) This paper estimates and evaluates the contributions of R&D tax incentives and publicly financed R&D investment policies in promoting growth of output and privately funded R&D investment in US manufacturing industries. Publicly financed R&D induces cost savings but crowds out privately-financed R&D investment while the incremental R&D tax credit and the immediate deductibility provision of R&D expenditures have a significant impact on privately financed R&D investment. The optimal mix of both instruments is an important element for sustaining a balanced growth in output and productivity in the manufacturing sector. Published: Journal of Public Economics, vol. 63, no.1 (Dec 1996): 57-81. This paper is available as PDF (419 K) or via email.
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