Direct public funding of R&D investment to stimulate technological innovation has a strong theoretical case and has gained renewed attention in recent times as a way to address long-term challenges of modern society such as climate change, energy independence, and national security. We estimate the dynamic macroeconomic effects of government R&D investment and we find that it is very effective in fostering the national innovation effort by crowding in private R&D investment and raising aggregate output in the long run, but also that it stimulates a strong expansion from the outset, in particular through anticipation effects.
Macroeconomic effects of public R&D
Matteo Deleidi;
2026-01-01
Abstract
Direct public funding of R&D investment to stimulate technological innovation has a strong theoretical case and has gained renewed attention in recent times as a way to address long-term challenges of modern society such as climate change, energy independence, and national security. We estimate the dynamic macroeconomic effects of government R&D investment and we find that it is very effective in fostering the national innovation effort by crowding in private R&D investment and raising aggregate output in the long run, but also that it stimulates a strong expansion from the outset, in particular through anticipation effects.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
