De Lipsis, Vincenzo;
Deleidi, Matteo;
Mazzucato, Mariana;
Agnolucci, Paolo;
(2023)
Macroeconomic Effects of Public R&D.
(Working Paper Series
2023-02).
UCL Institute for Innovation and Public Purpose: London, UK.
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Abstract
The direct public funding of R&D investment to stimulate technological innovation has a strong theoretical case and has gained renewed attention in the recent policy debate as a way to address the long-term challenges of modern society such as pandemics, climate change, and the transition to a low-carbon economy. We estimate the dynamic macroeconomic effects of government R&D investment and we find that it is very effective in fostering the total national innovation effort, crowding in private R&D investment, and in raising aggregate output in the long run. We also find that the public stimulus goes beyond private R&D activities and involves a very strong expansion of overall economic activity since the early periods. Finally, we uncover a strong positive impact of the private sector’s anticipation of public R&D spending, which can be interpreted as a confirmation of the importance of managing expectations to reduce the uncertainty inherent to R&D activities.
Type: | Working / discussion paper |
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Title: | Macroeconomic Effects of Public R&D |
Open access status: | An open access version is available from UCL Discovery |
Publisher version: | https://www.ucl.ac.uk/bartlett/public-purpose/wp20... |
Language: | English |
Additional information: | This version is the version of record. For information on re-use, please refer to the publisher’s terms and conditions. |
UCL classification: | UCL UCL > Provost and Vice Provost Offices > UCL BEAMS UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment UCL > Provost and Vice Provost Offices > UCL BEAMS > Faculty of the Built Environment > Inst for Innovation and Public Purpose |
URI: | https://discovery.ucl.ac.uk/id/eprint/10196131 |
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