Public R&D Policies and Cost Behavior of the Us Manufacturing Industries

51 Pages Posted: 13 Jul 2000 Last revised: 30 Oct 2022

See all articles by Theofanis P. Mamuneas

Theofanis P. Mamuneas

University of Cyprus - Department of Economics

M. Ishaq Nadiri

New York University (NYU) - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: March 1995

Abstract

This paper estimates and evaluates the contributions of R&D tax incentives and publicly financed R&D investment policies in promoting growth of output and privately funded R&D investment in US manufacturing industries. Publicly financed R&D induces cost savings but crowds out privately-financed R&D investment while the incremental R&D tax credit and the immediate deductibility provision of R&D expenditures have a significant impact on privately financed R&D investment. The optimal mix of both instruments is an important element for sustaining a balanced growth in output and productivity in the manufacturing sector.

Suggested Citation

Mamuneas, Theofanis P. and Nadiri, M. Ishaq, Public R&D Policies and Cost Behavior of the Us Manufacturing Industries (March 1995). NBER Working Paper No. w5059, Available at SSRN: https://ssrn.com/abstract=225838

Theofanis P. Mamuneas (Contact Author)

University of Cyprus - Department of Economics ( email )

75 Kallipoleos Street
P.O. Box 20537
1678 Nicosia
Cyprus

M. Ishaq Nadiri

New York University (NYU) - Department of Economics ( email )

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New York, NY 10011
United States
212-998-8968 (Phone)
212-995-4013 (Fax)

National Bureau of Economic Research (NBER)

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