Empirically R&D expenditure moves pro-cyclically, but the pro- cyclicality is a puzzle from the Schumpeterian point of view. The paper examines the cyclical property of R&D expenditure in the context of endogenous growth, and concludes that (i) substitutability between investing in physical...

This paper uses statistical evidence from a unique longitudinal data set for Australian firms to examine the use and impact of some major R&D and export facilitation programs from 1994-98. The programs examined included the EMDG (Export Market Development Grants) scheme, Export Access, Austrade...