{"status":"ok","message-type":"work","message-version":"1.0.0","message":{"indexed":{"date-parts":[[2026,10,6]],"date-time":"2026-10-06T20:43:27Z","timestamp":1791319407444,"version":"4.3.1"},"reference-count":37,"publisher":"MIT Press","issue":"1","content-domain":{"domain":["direct.mit.edu"],"crossmark-restriction":true},"short-container-title":[],"published-print":{"date-parts":[[2025,1,3]]},"abstract":"<jats:title>Abstract<\/jats:title>\n               <jats:p>We examine the impact of government funding for R&amp;D\u2014and defense-related R&amp;D in particular\u2014on privately conducted R&amp;D and its ultimate effect on productivity growth. We estimate longitudinal models that relate privately funded R&amp;D to lagged government-funded R&amp;D using industry-country level data from OECD countries and firm level data from France. To deal with the potentially endogenous allocation of government R&amp;D funds, we use changes in predicted defense R&amp;D as an instrumental variable. In many OECD countries, expenditures for defense-related R&amp;D represent by far the most important form of public subsidies for innovation. In both datasets, we uncover evidence of \u201ccrowding in\u201d rather than \u201ccrowding out,\u201d as increases in government-funded R&amp;D for an industry or a firm result in significant increases in private sector R&amp;D in that industry or firm. On average, a 10% increase in government-financed R&amp;D generates a 5% to 6% additional increase in privately funded R&amp;D. We also find evidence of international spillovers, as increases in government-funded R&amp;D in a particular industry and country raise private R&amp;D in the same industry in other countries. Finally, we find that increases in private R&amp;D induced by increases in defense R&amp;D result in productivity gains.<\/jats:p>","DOI":"10.1162\/rest_a_01293","type":"journal-article","created":{"date-parts":[[2023,2,7]],"date-time":"2023-02-07T20:37:16Z","timestamp":1675802236000},"page":"14-27","update-policy":"https:\/\/doi.org\/10.1162\/mitpressjournals.corrections.policy","source":"Crossref","is-referenced-by-count":65,"title":["The Intellectual Spoils of War? Defense R&amp;D, Productivity, and International Spillovers"],"prefix":"10.1162","volume":"107","author":[{"given":"Enrico","family":"Moretti","sequence":"first","affiliation":[{"name":"University of California at Berkeley, NBER, and CEPR"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"Claudia","family":"Steinwender","sequence":"additional","affiliation":[{"name":"Ludwig-Maximilians-University of Munich, CEPR, CEP, and CESifo"}],"role":[{"vocabulary":"crossref","role":"author"}]},{"given":"John","family":"Van Reenen","sequence":"additional","affiliation":[{"name":"LSE, NBER, and CEPR"}],"role":[{"vocabulary":"crossref","role":"author"}]}],"member":"281","published-online":{"date-parts":[[2025,1,3]]},"reference":[{"key":"2025012819495666500_B1","doi-asserted-by":"crossref","first-page":"645","DOI":"10.3982\/ECTA15445","article-title":"Optimal Taxation and R&D Policies","volume":"90","author":"Akcigit","year":"2022","journal-title":"Econometrica"},{"issue":"1","key":"2025012819495666500_B2","doi-asserted-by":"crossref","first-page":"117","DOI":"10.1093\/restud\/rdy034","article-title":"Public R&D Investment and Private Sector Patenting: Evidence from NIH Funding Rules","volume":"86","author":"Azoulay","year":"2019","journal-title":"Review of Economic Studies"},{"key":"2025012819495666500_B4","first-page":"50","article-title":"Spain and ESDP","author":"Barb\u00e9","year":"2007","journal-title":"The South and ESD: Greece, Italy, Portugal and Spain"},{"issue":"4","key":"2025012819495666500_B5","doi-asserted-by":"publisher","first-page":"1566","DOI":"10.1086\/705418","article-title":"Innovation in the Global Firm","volume":"128","author":"Bilir","year":"2020","journal-title":"Journal of Political Economy"},{"issue":"1","key":"2025012819495666500_B6","doi-asserted-by":"crossref","first-page":"1","DOI":"10.1016\/S0047-2727(01)00086-X","article-title":"Do R&D Tax Credits Work? 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