Blucher Engineering Proceedings 2018
DOI: 10.5151/enei2018-83
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Abstract: The objective of this paper is to examine whether the level of fiscal decentralization of a country is a relevant variable to explain public investment in innovation (measured as the share of research and development (R&D) spending in total government budget) and the intensity of basic research within the public R&D bundle. To assess the effects of decentralization, we present a theoretical model where a 'benevolent government' invests in R&D aiming at maximizing net income available in the country (central go… Show more

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