R&D and growth
a. Why is the amount of R&D spending important for growth? How do the appropriability and fertility of research affect the amount of R&D spending?
Howdo each of the policy proposals listed in (b) through (e)
affect the appropriability and fertility of research, R&D spending in the long run, and output in the long run?
b. An international treaty ensuring that each country's pat- ents are legally protected all over the world.
c. Tax credits for each dollar of R&D spending.
d. A decrease in funding of government-sponsored confer- ences between universities and corporations.
e. The elimination of patents on breakthrough drugs, so the drugs can be sold at a low cost as soon as they be- come available.