Template-type: ReDIF-Paper 1.0
Author-Name: Perrot, Radhika
Author-Email: bhuyan@merit.unu.edu
Author-Workplace-Name: UNU-MERIT/MGSoG
Author-Name: Mosaka, David 
Author-Email: mosakad@telkomsa.net
Author-Workplace-Name: Beracah Consulting
Author-Name: Nokaneng, Lefentse 
Author-Email: lefentse@gmail.com
Author-Workplace-Name: Beracah Consulting
Author-Name: Sikhondze, Rita 
Author-Email: Rita.Sikhondze@wits.ac.za
Author-Workplace-Name: Wits University
Title: Government R&D impact on the South African macro-economy 
Abstract: This paper analyses the impact of government R&D on the macro-economy of 
	 South Africa. The empirical estimates of the impact of R&D are based on 
	 the backward and forward linkages of a macro-economy, within a national 
	 innovation system (NIS). There are structural implications of the study, 
	 namely how R&D investments can result in the creation of new industries, 
	 job creation and improved national productivity. The largest indirect 
	 impact of R&D expenditure by public institutions and agencies is on 
	 community services, financial and businesses and manufacturing, in terms 
	 of employment and contribution to the country's GDP. Community services 
	 are impacted through the backward linkages derived from the expenditure 
	 by various research institutions on intermediate inputs such as water, 
	 electricity and health. Describing and quantifying the linkages between 
	 research, development and innovation and economic impacts provides a 
	 basis for a greater understanding of the value the economy and its 
	 sectors derive from R&D. The results of the analysis indicates that the 
	 real economic significance of R&D lies not in spending, but in the 
	 results achieved and is measured in terms of contribution to innovation 
	 as a key determinant of economic and social wellbeing, productivity, and 
	 growth and development.   
Classification-JEL: R15, O38, O11
Keywords: research and development (R&D), innovation, knowledge economy indicators,
	 input-output model, impact assessment
Series: UNU-MERIT Working Papers
Creation-Date: 2012
Number: 2012-068
File-URL: https://unu-merit.nl/publications/wppdf/2012/wp2012-068.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2012068