The Innovation Hystersis of Government's R&D Subsidy

碩士 === 國立暨南國際大學 === 經濟學系 === 89 === This thesis tries to analyze the `hystersis effect' within a two-country model originated from Grossman and Helpman (1991). We investigate how a low-tech country with less innovation activities can grab some of world market share of hi-tech product...

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Bibliographic Details
Main Authors: Chung-Bin Yang, 楊崇彬
Other Authors: Ming-Jang Weng
Format: Others
Language:zh-TW
Published: 2001
Online Access:http://ndltd.ncl.edu.tw/handle/4yk8nn
Description
Summary:碩士 === 國立暨南國際大學 === 經濟學系 === 89 === This thesis tries to analyze the `hystersis effect' within a two-country model originated from Grossman and Helpman (1991). We investigate how a low-tech country with less innovation activities can grab some of world market share of hi-tech products from its counterpart, the hi-tech country with more innovation activities, via government's R&D subsidy. We modified some unrealistic assumptions of Grossman and Helpman's model in their joint work Innovation and Growth in the Global Economy. Following Grossman and Helpman's methodology of dynamic programming, we found that the hystersis effect of low-tech government's R&D subsidy does exist under two conditions: first, the wage rate of high-tech country is greater than that of low-tech country, and second, the constant rate of innovation in high-tech country is large enough. However, the hystersis effect of low-tech country's R&D subsidy in our model can only ensure the low-tech country to increase its hi-tech market share up to a limit no matter how big or how long the subsidy is, rather than to occupy the whole market share of world's hi-tech products as concluded in Grossman and Helpman. This finding is more general in fitting the real world economy.