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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
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
