TY  - BOOK
AU  - Maican,Florin G.
AU  - Orth,Matilda
AU  - Roberts,Mark J.
AU  - Vuong,Van Anh
ED  - National Bureau of Economic Research.
TI  - The Dynamic Impact of Exporting on Firm R&D Investment
T2  - NBER working paper series
PY  - 2020///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
N1  - October 2020; Hardcopy version available to institutional subscribers
N2  - This article estimates a dynamic structural model of firm R&D investment in twelve Swedish manufacturing industries and uses it to measure rates of return to R&D and to simulate the impact of trade restrictions on the investment incentives. R&D spending is found to have a larger impact on firm productivity in the export market than in the domestic market. Export market profits are a substantial source of the expected return to R&D. Counterfactual simulations show that trade restrictions lower both the expected return to R&D and R&D investment level, thus reducing an important source of the dynamic gains from trade. A 20 percent tariff on Swedish exports reduces the expected benefits of R&D by an average of 32.2 percent and lowers the amount of R&D spending by 13.9 percent in the high-tech industries. The corresponding reductions in the low-tech industries are 30.4 and 8.9 percent, respectively. R&D adjustments in response to export tariffs mainly occur on the intensive, rather than the extensive, margin
UR  - https://www.nber.org/papers/w27986
UR  - http://dx.doi.org/10.3386/w27986
ER  -