Governments now widely recognize that long-term economic growth hinges on a country's ability to adopt and develop new technology. To stimulate technological capability most countries therefore maintain extensive subsidy systems to stimulate innovation in private firms. Economic analysis of the effectiveness of these subsidy systems has been sparse.
The empirical and theoretical research presented in this book indicates that the subsidy systems that are most common today are not the most effective ones. In many cases it is even questionable whether these programs are worthwhile from a social point of view. This is exacerbated by the fact that subsidizing agencies rarely measure the effectiveness of their programs.
From the analysis policy proposals emerge concerning the design of subsidy systems, evaluation methods and project selection techniques.
This book addresses policy advisers and researchers in the field of the economics of technological change. It will undoubtedly influence the design of technology policy in coming years.
