Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence

Is public R&D spending complementary and thus additional to private R&D spending, or does it substitute for and tend to crowd out private R&D Conflicting answers are given to this question. We survey the body of available econometric evidence accumulated over the past 35 years. A framework for analysis of the problem is developed to help organize and summarize the findings of econom..