Cost-Effectiveness of Potential Federal Policies Affecting Research and Development Expenditures in the Auto, Steel and Food Industries,
CENTER FOR NAVAL ANALYSES ARLINGTON VA
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This paper contains the writers preliminary analysis of the demand for company financed research and development expenditures CRD in three manufacturing industries. Based upon estimates of the demand for CRD, he estimated the costs and effects of two public policies that could affect RD expenditures 1 changes in the level of federally financed RD expenditures and 2 changes in the cost of private RD through tax credits. He develops a capital theoretic framework in which he assumes that CRD generates knowledge or research capital that may increase output demand or reduce costs. Based upon his capital theoretic framework, the demand for the research capital stock is estimating using industry level time-series data for 1956-74. These time-series data enable him to obtain the first measures of changes in the price of knowledge upon the demand for CRD, and also to measure the impact of changes in federal RD expenditures upon CRD.
- Administration and Management
- Economics and Cost Analysis
- Government and Political Science