WS13 - Techn Progress, R&D

WS13 - Techn Progress, R&D - ECO202: Tutorial...

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ECO202: Tutorial Worksheet 13 1. 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? For each of the following policy proposals, determine how the appropriability and fertility of research are affected and what you expect the long-run effect to be on R&D and on output: a. An international treaty that ensures that each country’s patents are legally protected all over the world. b. Tax credits for each dollar of R&D spending. c. A decrease in funding of government-sponsored conferences between universities and corporations. d. The elimination of patents on breakthrough drugs so that the drugs can be sold at low cost as soon as they are available. 2. Where does technological progress come from for the economic leaders of the world? Where does it come from in the developing countries? Do you see any reasons why the developing countries may choose to have poor patent protection? Are there any dangers in such a policy (for
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This note was uploaded on 12/02/2011 for the course ECON eco200 taught by Professor Wolfson during the Spring '11 term at University of Toronto- Toronto.

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