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We study a model where economic growth is fueled by public basic-research investment and the importation of leading … technology from foreign countries. In each period, the government chooses the amount of basic research, balancing the cost and … benefits of stimulating growth through both channels. We establish the existence of steady states and the long-run share of …
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We study a model where economic growth is fueled by public basic-research investment and the importation of leading … technology from foreign countries. In each period, the government chooses the amount of basic research, balancing the cost and … benefits of stimulating growth through both channels. We establish the existence of steady states and the long-run share of …
Persistent link: https://www.econbiz.de/10013137298
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What is the economic rationale for investing in science? Based on an open economy model of creative destruction, we characterize four key factors of optimal investment in basic research: the stage of economic development, the strength of the manufacturing base, the degree of openness, and the...
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innovation and growth. In an overlapping generations framework, we study the occurrence of research bubbles and show that they …
Persistent link: https://www.econbiz.de/10012204265