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APPROPRIABILITY AND PUBLIC SUPPORT OF R&D IN CANADA
Petr Hanel. Kristian Palda.
Original Articles
This paper investigates the extent to which considerations of inappropriability, a form of market failure, guide federal support to private industrial R&D in Canada. Statistics of the overall allocation of subsidies between grants and tax credits show little evidence at an inappropriability rationale. Econometric analysis of grant distributions, using a recently proposed operational concept of inappropriability, supports this conclusion at an aggregate level, but gives different results when a particular grant program is probed.
