A Micro-Economic Approach to Government Support of R&D Investments in the Private Sector, Science, Technology and the Economy Program (STE) – Workin
This paper focuses on the economic decisions of the government to subsidize investments in the private sector, and to discriminate among firms in its support programs. The presumption is that, by taxing corporate profits the government, affects investment decisions made by corporations and causes them to invest less than what would be socially optimal. […]
The Impact of R&D Spillover on Growth and Productivity in Israeli Manufacturing Industries 1990-1994, Science, Technology and the Economy Program (STE) – Working Papers Series STE-WP-14
The study presents the positive external effects (spillovers) of investments in research and development in manufacturing industries, in Israel and abroad. This examination quantifies the spillover of domestic and imported technologies, through intermediates and capital goods, to establishments that did not participate directly in the research and development process. The analysis examines the interactions between […]
Universal Banking and Investment in R&D Intensive Companies an Empirical Analysis STE-WP-15 , 2002
This study provides a new insight to why Israeli R&D intensive companies float their equity on foreign markets. A variety of studies have tackled this issue but very few discuss the relationship between strong universal banks who dominate various areas of the financial sector and availability of funds for commercially driven technology research. The […]
Financing R&D in Mature Companies: An Empirical Analysis, Science, Technology and the Economy Program (STE) – Working Papers Series STE-WP-10
R&D intensive firms are often described as (1) relying mainly on equity financing; (2) investing primarily in intangible assets; (3) exhibiting a high market to book ratio (a high Tobin’s q); and (4) as being young and fast growing. We put these commonplace characterizations to systematic empirical tests. For our sample of Israeli manufacturing firms […]
Is Venture Capital Special? Empirical Evidence from a Government Initiated Venture Capital Market, Science, Technology and the Economy Program (STE) – Working Papers Series STE-WP-9
The financing extended by venture capital funds is examined in this paper, using a unique database that includes information about all the firms in the portfolio of all the Israeli venture capital funds in 1997–2000, and data on a control group of firms that were not backed by venture capital funds but were supported by […]
How Users Build The Innovation Partnership They Need
Innovation is unlikely to be successful if it is founded on the supposition that the innovative process is essentially simple, linear and sequential. It is not. The innovative process is complex, intricate and irregular and basically it can be considered as a learning and information process. Successful innovation is the product of a total information […]
The Military as a Public Space – The Role of the IDF in the Israeli Software Innovation System, Science, Technology and the Economy Program (STE) – Working Papers Series STE-WP-13
This paper focuses on the role played by the Israeli military (IDF) in creating and sustaining the highly innovative Israeli software industry. The IDF is often credited with a large role in the creation and sustained success of the Israeli high-tech industry. The paper analyze the activities and history of the IDF’s central computer […]
Quantitative Growth Effects of Subsidies in a Search Theoretic R&D Modal, Science, Technology and the Economy Program (STE) – Working Papers Series STE-WP-16-2002
Should government subsidize R&D and does it matter how these subsidies are allocated? We examine these questions in a dynamic model where R&D is described as sequential sampling from a distribution of new ideas. Successful discoveries affect future available resources and incentives for further R&D. Consequently, there may be under-investment in R&D. We study the […]
The Determination of Success of R&D Projects: Evidence from American-Israeli Research Alliances, Science, Technology and the Economy Program STE-WP-8-2001
A basic premise of Israeli R&D support programs has been the principle of neutrality – all eligible projects are funded. With a binding budget constraint, however, the government has to select the projects it funds and thus to depart from neutrality. An optimal departure would favor those projects that have less of a chance to […]
Cooperation and Competition in R&D with Uncertainty & Spillovers, Science, Technology and the Economy Program STE-WP-6
In a general setting with uncertainty and spillovers in R&D activity, we consider the incentive to cooperate among firms at any or all of the following three stages. Firms can jointly agree on the level of R&D expenditures, they can set up joint research facilities, and/or they can engage in an information sharing agreements, by […]
