Efficient Industrial Policy for Innovation: Standing on the Shoulders of Hidden Giants
Efficient R&D subsidies target the technology fields where innovation generates valu-
able knowledge spillovers. To quantify potential efficiency gains, we infer field-specific
subsidy return rates from patent data by combining new measures for innovations’
private and spillover values with structural estimates of the idea value distribution
and innovation costs. Within-country returns from optimally targeted subsidies are
at least 40% higher than returns from non-discriminating policies. Coordinating
field-specific subsidies across OECD countries yields a further 30% higher returns.
Hence, solving information and coordination problems related to industrial policy for
innovation could lead to large welfare gains.
Date: 13 February 2023, 16:05 (Monday, 5th week, Hilary 2023)
Venue: Manor Road Building, Manor Road OX1 3UQ
Venue Details: Lecture theatre or https://zoom.us/j/92415955348?pwd=ME5ybjVBVk90aThHdkcwVnZiUWF4Zz09
Speaker: Ralf Martin (Imperial College London)
Organising department: Department of Economics
Part of: Environment and Resource Economics Seminar
Booking required?: Not required
Audience: Members of the University only
Editor: Emma Heritage