Seminar  |  21.07.2022 | 12:00  –  13:00

Innovation & Entrepreneurship Seminar: Efficient Industrial Policy for Innovation – Standing on the Shoulders of Hidden Giants

Dennis Verhoeven (Bocconi University)

Hybrid (TUM Main Campus/Online)

Gemeinsam mit der TUM, TUM Main Campus, Seminarraum 0505.2544 (Eingang Luisenstraße/Theresienstraße, 2. OG)

Knowledge spillovers drive a wedge between private and social returns to R&D. Efficient innovation policy assigns subsidies to fields where spillovers are relatively important. We develop new measures for the private and spillover value of patented innovations and embed these in a structural microeconomic model to estimate field-specific marginal returns to R&D support. We find that expected returns to subsidy vary strongly by field and country, suggesting that targeted innovation policy has large potential to increase welfare. Because spillovers cross country borders unevenly, supranational coordination of innovation policy offers large potential efficiency gains, especially for smaller countries.

Kontakt: Fabian Gaessler