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The case for technology policy: A tentative evaluation

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  • Paqué, Karl-Heinz

Abstract

This paper is a tentative summary and appraisal of the main theoretical arguments and empirical evidence for/against an industrial policy in support of high-tech industries. The paper reviews arguments based on endogenous growth theory and strategic trade theory and surveys the most relevant pieces of empirical evidence, notably on external learning effects and international rent-shifting. The author concludes that there is no solid empirical basis for sector-specific technology policies, but that one might make a sensible case for non-discriminatory government support to knowledge creation by private firms, e.g., through a generous tax treatment of private spending on research and development.

Suggested Citation

  • Paqué, Karl-Heinz, 1995. "The case for technology policy: A tentative evaluation," Kiel Working Papers 714, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:714
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    Cited by:

    1. Dohse, Dirk, 1998. "The BioRegio-contest: a new approach to technology policy and its regional consequences," Kiel Working Papers 880, Kiel Institute for the World Economy (IfW Kiel).
    2. Stehn, Jürgen, 1996. "Subsidies, countervailing duties, and the WTO: Towards an open subsidy club," Kiel Discussion Papers 276, Kiel Institute for the World Economy (IfW Kiel).

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    More about this item

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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