The Effects of Government Subsidies on Business R & D Employment : Evidence from Oecd Countries

Content Provider	Semantic Scholar
Author	Thomson, Russell
Copyright Year	2013
Abstract	Existing evidence suggests that government subsidies stimulate business R&D expenditure. However, most studies fail to address the possibility that part of the observed increase in expenditure may be due to higher R&D wages. We consider the impact of different government subsidies on R&D workers in 25 OECD countries and fi nd that the short run tax-price elasticity of R&D employment is marginally higher than existing estimates of the elasticity of expenditure with respect to the tax price of both labor and capital combined. We conclude that there is no evidence to indicate that wage infl ation has seriously confl ated past estimates of the effectiveness of government R&D subsidies.
File Format	PDF HTM / HTML
Alternate Webpage(s)	http://www.ntanet.org/NTJ/66/2/ntj-v66n02p281-310-effects-government-subsidies-business-rd.pdf?v=%CE%B1
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article