Abstract: We propose a model designed to capture four key economic aspects related to the efficiency of R&D incentives: (i) how firms reallocate limited resources between experimental and applied R&D, (ii) how the impact of R&D incentives varies with firm size, (iii) how these incentives influence the geographic distribution of research, and (iv) how tax credits and grants differently impact R&D allocation. The model stands consistent with empirical findings justifying a trade-off between experimental and applied research due to firms’ resource constraints: increasing one reduces the other. R&D tax credits may create stronger distortions in R&D allocation compared to grants. When firms receive R&D tax credits, they prioritize experimental R&D. Grants do not strongly influence experimental R&D and firms may not reallocate resources as sharply as they do with tax credits. It creates a more balanced impact on research direction, supporting both experimental and applied research. R&D tax credits incentivize small firms to engage in experimental R&D more than large firms. An economy that provides greater R&D tax credits to firms as an incentive may become more oriented toward experimental research.
Abstract: We propose a model designed to capture four key economic aspects related to the efficiency of R&D incentives: (i) how firms reallocate limited resources between experimental and applied R&D, (ii) how the impact of R&D incentives varies with firm size, (iii) how these incentives influence the geographic distribution of research, and (iv) how tax credits and grants differently impact R&D allocation. The model stands consistent with empirical findings justifying a trade-off between experimental and applied research due to firms’ resource constraints: increasing one reduces the other. R&D tax credits may create stronger distortions in R&D allocation compared to grants. When firms receive R&D tax credits, they prioritize experimental R&D. Grants do not strongly influence experimental R&D and firms may not reallocate resources as sharply as they do with tax credits. It creates a more balanced impact on research direction, supporting both experimental and applied research. R&D tax credits incentivize small firms to engage in experimental R&D more than large firms. An economy that provides greater R&D tax credits to firms as an incentive may become more oriented toward experimental research.
Abstract: This study examines the impact of both gender and gendered agglomeration - viewed as a circumstance in which firms with a given gender composition tend to establish themselves in specific locations - on innovation dynamics in terms of knowledge spillovers. Our framework considers gender composition of ownership, management, and workforce, as well as various types of innovations including product, process, marketing, aggregate innovation, and R&D. The paper employs an ordered probit and a two-stage Heckman probit models with instrumental variable to address both selection and reverse causality issues between gender and innovation. Using data from the 2016 World Bank Enterprise Survey on 3,921 African firms, this study yields four main new findings: (i) both male and female agglomerations influence positively the probability of innovating, (ii) the positive effect of, having a woman as manager, having fewer woman among both the firm's owners and workforce, is contingent upon the variety of innovations within the firm, (iii) in term of human capital, the nature of the agglomeration does not matter for innovation, and (iv) R&D expenditures decisions are made by the firm’s ownership rather than its management.
Abstract: This study examines the impact of both gender and gendered agglomeration - viewed as a circumstance in which firms with a given gender composition tend to establish themselves in specific locations - on innovation dynamics in terms of knowledge spillovers. Our framework considers gender composition of ownership, management, and workforce, as well as various types of innovations including product, process, marketing, aggregate innovation, and R&D. The paper employs an ordered probit and a two-stage Heckman probit models with instrumental variable to address both selection and reverse causality issues between gender and innovation. Using data from the 2016 World Bank Enterprise Survey on 3,921 African firms, this study yields four main new findings: (i) both male and female agglomerations influence positively the probability of innovating, (ii) the positive effect of, having a woman as manager, having fewer woman among both the firm's owners and workforce, is contingent upon the variety of innovations within the firm, (iii) in term of human capital, the nature of the agglomeration does not matter for innovation, and (iv) R&D expenditures decisions are made by the firm’s ownership rather than its management.
Abstract: We analyze the increase in social welfare growth - measured in consumption equivalent (CE) units - by separating the contributions of population growth, technology growth and per capita consumption growth in the 10 Canadian provinces. Our social welfare growth accounting reveals that population growth is adjusted by a value-of-life factor v that empirically averages around 6.46 across provinces and over time. On average, across provinces, CE welfare growth amounts to 9.67%, with population and technology growth contributing respectively 4.91% and 3.04% while consumption growth contributes 1.72%. We conduct several robustness analysis including considering within-province heterogeneity and consumption inequality. Because the population growth is scaled up by a value-of-life factor, one percent increase in population growth generate v percent increase in CE welfare growth. This basically makes population growth the predominant factor to CE welfare growth. Finally, we examined the elements that impact the value-of-life factor and we found that it increases with personal income and inflows migration while decreasing with mortality and outflows migration.