Discussion Papers no. 572

Domestic innovation and learning from abroad

Growth policy in a small, open economy

Research and development (R&D) play a pivotal role for innovation and productivity growth, and knowledge spillovers can make the case for public support to private R&D. In small and open economies, absorption of foreign knowledge through exports and imports can be even more decisive for economic growth than domestic innovation. This macro economic analysis investigates how policies should be formed in order to reap the largest productivity effects, when both these sources of growth interplay. In particular, the firms' capacity to absorb knowledge from abroad depends on domestic R&D, and this reinforces the efficiency arguments for stimulating R&D. We find that from a welfare perspective, export promotion of R&D-based technologies proves slightly more efficient than R&D support.

Om publikasjonen

Tittel

Growth policy in a small, open economy. Domestic innovation and learning from abroad

Ansvarlige

Brita Bye, Leo Andreas Gr@ynfeld, Taran Fæhn

Serie og -nummer

Discussion Papers no. 572

Utgiver

Statistics Norway

Emne

Discussion Papers

Antall sider

37

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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