To quote Dosi and Nelson (2010), “… advances are likely to occur in the neighbourhood of the techniques already in use within the firm.” Following Griliches (1979), one way of modelling the cumulative nature of R&I is to consider not the flow of R&I expenditure but the accumulated stock of past and present R&I expenditure as the appropriate variable to affect productivity, or to enter as an input. [...] Because of the non-rival nature of knowledge, the innovator has no interest in sharing with the fund provider some of the information the latter would need to justify the funding. [...] 3.3.7 Regulations The relationship between regulation and innovation is multi-faceted, depending on the nature and the quality of the regulation itself, on the sectors involved and the time horizon considered8. [...] 13 Mohnen (2013) reports that the elasticity of the R&I wage with respect to the fraction of the wage supported by the fiscal incentives scheme is estimated at 0.1 in the short run and 0.13 in the long run. [...] Four main mechanisms are involved in the assessment of R&I policies to calculate the competitiveness, growth and employment consequences of the policy: (i) The crowding-in or leverage effect from R&I public funds on R&I expenditures: the current version of NEMESIS calibrates the leverage effect to be 0.74: ie one euro of extra subsidies generate 0.74 euros of new R&I expenditures.
Authors
- Pages
- 37
- Published in
- Belgium
