Acemoglu, Daron; Akcigit, Ufuk; Bloom, Nicholas; Kerr, … - Census Bureau, Department of Commerce - 2013
We build a model of firm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A … incumbents reduces growth and welfare. For example, a subsidy to incumbent R&D equivalent to 53 of GDP reduces welfare by about 1 …