Research Policy 2020

Directed innovation policies and the supermultiplier: An empirical assessment of mission-oriented policies in the US economy

Matteo Deleidi^1,2,3; Mariana Mazzucato³

¹ Roma Tre University · ² Parthenope University of Naples · ³ University College London

Abstract

This paper investigates the determinants of economic growth from both a theoretical and an empirical perspective. The paper combines the supermultiplier model of growth with the Neo-Schumpeterian framework that emphasises the entrepreneurial role of the state. We aim to detect the macroeconomic effect generated by alternative fiscal policies: generic ones and more directed ‘mission-oriented’ ones. Using an SVAR model for the US economy for the 1947–2018 period, we show that mission-oriented policies produce a larger positive effect on GDP (fiscal multiplier) and on private investment in R&D (crowd-in effect) than the one generated by more generic public expenditures.

DOI

10.1016/j.respol.2020.104151

Sources

semanticscholar openalex

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APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓