Informing
Policy
for Progress

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 […]

Conceiving New Industrial Systems: The Different Emergence Paths of the High-Technology Industry in Israel and Ireland, Science, Technology and the Economy Program (STE) – Working Papers Series STE-WP-11

In the last decade, both Israel and Ireland have been on the forefront of a successful double revolution. In the international arena, the two small states have been the hotbeds of new technology based firms (NTBF) that establish themselves in global markets in the area of software and information technology, making the two states successful […]

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 unit, […]

Defense R&D and Economic Growth in Israel: A Research Agenda, Science, Technology and the Economy Program STE-WP-4

When evaluating Israel’s high-tech capabilities and impressive economic achievements since inception, it is difficult not to recognize the important role played by defense and military developments. In particular, defense-related R&D had significant impacts on, as much as it was aided by, Israel’s industrial sector, higher educational system in science and engineering, research community, and the […]

R&D, Subsidies and Productivity, Science, Technology and the Economy Program STE-WP-7

In this paper we formulate a model that extends the traditional theoretical literature on the optimal management of an R&D project by emphasizing the model’s empirical and policy implications. We solve the firm’s dynamic problem and use the resulting optimal R&D policy to assess the role of subsidies aimed at stimulating R&D activities. The theoretical […]