Uncertainty and the dynamics of r&d
By: Nick Bloom.
Contributors: Bloom, Nick.; National Bureau of Economic Research.
Series: NBER working paper series -- working paper 12841; Working paper series (National Bureau of Economic Research : Online) -- working paper no. 12841.
Publisher: National Bureau of Economic Research
Published: 2007
Place of publication: Cambridge, MA
Language: eng
Format: Electronic resource
Description: "Uncertainty varies strongly over time, rising by 50% to 100% in recessions and by up to 200% after major economic and political shocks.  This paper shows that higher uncertainty reduces the responsiveness of R&D to changes in business conditions - a "caution-effect" - making it more persistent over time.  Thus, uncertainty will play a critical role in shaping the dynamics of R&D through the business cycle, and its response to technology policy.  I also show that if firms are increasing their level of R&D then the effect of uncertainty will be negative, while if firms are reducing R&D then the effect of uncertainty will be positive"--National Bureau of Economic Research web site.
Notes: Title from PDF file as viewed on 3/23/2007.

Includes bibliographical references.

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