TY  - JOUR
AU  - Mamuneas,Theofanis P.
AU  - Nadiri,M. Ishaq
TI  - Public R&D Policies and Cost Behavior of the US Manufacturing Industries
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5059
PY  - 1997
Y2  - June 1997
UR  - http://www.nber.org/papers/w5059
L1  - http://www.nber.org/papers/w5059.pdf
N1  - Author contact info:
Theofanis P. Mamuneas
Department of Economics
University of Cyprus, P. O. Box 20537, CY-1678, Ni
E-Mail: tmamuneas@ucy.ac.cy

M. Ishaq Nadiri
Department of Economics
New York University
19 W. 4th Street, 6th Floor
New York, NY  10012
Tel: 212/998-8968
Fax: 212/995-4013
E-Mail: min1@nyu.edu
AB  - 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.
ER  -