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Framework for the Analysis of Research and Adoption Activities and their Macroeconomic Effects

Objective

FRAME will develop a new generation of Dynamic Stochastic General Equilibrium (DSGE) models that will advance the state of the art by allowing for the first time realistic estimates of the impact of public research and innovation activities on innovation, productivity growth and unemployment.
FRAME will begin by constructing a baseline model,which can be extended to address different policy issues. The baseline DSGE model incorporates important new features: it distinguishes between investment by companies in R&D and their investment in technology adoption; it allows public R&D and innovation activities not only to enhance the productivity of private R&D but also to facilitate the diffusion of technologies to private companies. FRAME will extend this baseline model to allow: multiple sectors; multiple countries; endogenous skills; and labour markets with search frictions and unemployment. These extensions allow us to investigate the effects of different policy interventions over the short, medium and long term.
In addition to developing new models, FRAME will explore new approaches to estimate key model parameters, including: the elasticities of innovation with respect to private and public R&D; adoption lags; the elasticity of the speed of diffusion with respect to private adoption expenditures; and the elasticity of adoption with respect to public activities aimed at fostering the diffusion of new technologies to private companies. This last parameter will be estimated using a unique dataset combining information from firms on the introduction of new products with data on research contracts they have signed with the Fraunhofer Society. Public research and innovation activities have played a critical role in technological progress, yet we have little quantitative knowledge about their impact. FRAME will fill this gap and provide policymakers with a more realistic framework to study the impact of innovation policies and institutions on a broader range of variables.

Call for proposal

H2020-SC6-CO-CREATION-2016-2017

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Sub call

H2020-SC6-CO-CREATION-2016-1

Coordinator

ZEW - LEIBNIZ-ZENTRUM FUR EUROPAISCHE WIRTSCHAFTSFORSCHUNG GMBH MANNHEIM
Net EU contribution
€ 332 009,38
Address
L 71, 1
68161 Mannheim
Germany

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Region
Baden-Württemberg Karlsruhe Mannheim, Stadtkreis
Activity type
Research Organisations
Non-EU contribution
€ 0,00

Participants (5)

THE CENTRE FOR ECONOMIC POLICY RESEARCH
United Kingdom
Net EU contribution
€ 512 232,98
Address
33 Great Sutton Street 2nd Floor
EC1V 0DX London

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Region
London Inner London — East Haringey and Islington
Activity type
Research Organisations
Non-EU contribution
€ 0,00
LUNDS UNIVERSITET
Sweden
Net EU contribution
€ 189 131,79
Address
Paradisgatan 5c
22100 Lund

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Region
Södra Sverige Sydsverige Skåne län
Activity type
Higher or Secondary Education Establishments
Non-EU contribution
€ 0,00
UNIVERSITA COMMERCIALE LUIGI BOCCONI
Italy
Net EU contribution
€ 165 072,50
Address
Via Sarfatti 25
20136 Milano

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Region
Nord-Ovest Lombardia Milano
Activity type
Higher or Secondary Education Establishments
Non-EU contribution
€ 0,00
UNIVERSIDAD POMPEU FABRA
Spain
Net EU contribution
€ 100 255,00
Address
Placa De La Merce, 10-12
08002 Barcelona

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Region
Este Cataluña Barcelona
Activity type
Higher or Secondary Education Establishments
Non-EU contribution
€ 0,00
LONDON BUSINESS SCHOOL
United Kingdom
Net EU contribution
€ 173 201,25
Address
Regent S Park
NW1 4SA London

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Region
London Inner London — West Westminster
Activity type
Higher or Secondary Education Establishments
Non-EU contribution
€ 0,00