期刊名称：Bank of Finland Research Discussion Papers (früher: Bank of Finland Discussion Papers)
印刷版ISSN：0785-3572
电子版ISSN：1456-6184
出版年度：2013
卷号：2013
出版社：Suomen Pankki = Bank of Finland
摘要：We build a model of rm-level innovation, productivity growth and reallocation featuring endogenous entry and exit. A key feature is the selection between high- and low-type rms, which di¤er in terms of their innovative capacity. We estimate the parameters of the model using detailed US Census micro data on rm-level output, R&D and patenting. The model provides a good t to the dynamics of rm entry and exit, output and R&D, and its implied elasticities are in the ballpark of a range of micro estimates. We nd industrial policy subsidizing either the R&D or the continued operation of incumbents reduces growth and welfare. For example, a subsidy to incumbent R&D equivalent to 5% of GDP reduces welfare by about 1.5% because it deters entry of new high-type rms. On the contrary, substantial improvements (of the order of 5% improvement in welfare) are possible if the continued operation of incumbents is taxed while at the same time R&D by incumbents and new entrants is subsidized. This is because of a strong selection e¤ect: R&D resources (skilled labor) are ine¢ ciently used by low-type incumbent rms. Subsidies to incumbents encourage the survival and expansion of these rms at the expense of potential high-type entrants. We show that optimal policy encourages the exit of low-type rms and supports R&D by high-type incumbents and entry.
