Report on simulations exploring policy interventions

Report containing a full description of the simulations exploring the policy interventions in Task 1.4: Conduct policy experiments to assess the macroeconomic impact of various innovation policies. This will involve simulating the impulse response functions to un-anticipated changes in the policy variables. The policies considered will include: • Increase in R&D subsidy • Increase in public R&D activity • Increase in spending in public activities directed to fostering the diffusion of new technologies to the private sector • Introduction of a subsidy to skilled workers • Expansionary fiscal policy through increases in government spending vs. reduction in income or corporate taxes. This task will be carried out by CEPR and UPF.