Events at CERGE-EI
Thursday, 17 April, 2025 | 14:00 | Room 402 | Macro Research Seminar
Petr Sedláček (University of New South Wales) "The Bang for the Buck: Aggregate Impact of Firm-Level R&D Incentives"
University of New South Wales, Australia
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Meeting number: 2742 696 2775
Meeting password: 936541
Abstract: Firm-level research and development (R&D) incentives, such as subsidies and tax credits, are popular tools aimed at raising aggregate growth. We propose an empirical framework quantifying the aggregate impact of such firm-level R&D incentives. Our methodology – grounded in modern endogenous growth theory – can be applied with commonly available data and without solving a full structural model. Employing U.S. firm-level data, our estimates suggest that large firms are the strongest contributors to policy-induced increases in aggregate growth. However, subsidizing young, fast-growing firms (gazelles) can deliver the same bang for less than half the cost.
