IDEAS home Printed from https://ideas.repec.org/p/euf/ecopap/0482.html
   My bibliography  Save this paper

Innovation Policy and Economic Growth

Author

Listed:
  • Dirk Czarnitzki
  • Otto Toivanen

Abstract

This paper establishes theoretically a link between investments in economic growth and investments in R and D. This raises the importance of innovation policies as they are designed to narrow the gap between the socially optimal and the privately optimal levels of R and D. As innovation policies may be subject to crowding-out effects, we, second, empirically test whether R and D subsidies stimulate private investment in two countries of the European economic area. We employ Belgian and German firm level data for estimating treatment effects models. It turns out that public R and D grants stimulate private investments in both countries. Furthermore, the estimated treatment effects vary with the innovation experience of firms and their past labor productivity.

Suggested Citation

  • Dirk Czarnitzki & Otto Toivanen, 2013. "Innovation Policy and Economic Growth," European Economy - Economic Papers 2008 - 2015 482, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    • Handle: RePEc:euf:ecopap:0482
    as

    Download full text from publisher

    File URL: https://ec.europa.eu/economy_finance/publications/economic_paper/2013/ecp482_en.htm
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. A. Minniti & F. Venturini, 2014. "R&D Policy and Schumpeterian Growth: Theory and Evidence," Working Papers wp945, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Janusz Myszczyszyn & Irena Lacka & Sylwia Golab & Beata Bedzik & Blazej Supron, 2021. "A Preliminary Analysis of the Relationship between Economic Growth and Selected Innovativeness Indicators on the Example of Four European Union Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 3), pages 402-418.
    3. Gyedu, Samuel & Heng, Tang & Ntarmah, Albert Henry & He, Yingqi & Frimppong, Emmanuel, 2021. "The impact of innovation on economic growth among G7 and BRICS countries: A GMM style panel vector autoregressive approach," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    4. Stefan Raychev & Blaga Madzhurova & Dobrinka Stoyanova, 2020. "Policies And Innovations To Promote Economic Growth And Employment In The Age Of Globalization," Proceedings of Economics and Finance Conferences 10912996, International Institute of Social and Economic Sciences.

    More about this item

    JEL classification:

    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L59 - Industrial Organization - - Regulation and Industrial Policy - - - Other
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:euf:ecopap:0482. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ECFIN INFO (email available below). General contact details of provider: https://edirc.repec.org/data/dg2ecbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.