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Public R&D Policies and Cost Behavior of the U.S. Manufacturing Industries

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  • Mamuneas, T.P.
  • Nadiri, M.I.

Abstract

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.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Mamuneas, T.P. & Nadiri, M.I., 1993. "Public R&D Policies and Cost Behavior of the U.S. Manufacturing Industries," Working Papers 93-44, C.V. Starr Center for Applied Economics, New York University.
    • Handle: RePEc:cvs:starer:93-44
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    More about this item

    Keywords

    taxation ; manufacturing ; research and development;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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