Template-type: ReDif-Paper 1.0
Author-Name: Van Elk, Roel
Author-Name: Verspagen, Bart
Author-workplace-name: UNU-MERIT
Author-Name: Ter Weel, Bas
Author-Name: Van der Wiel, Karen
Author-Name: Wouterse, Bram
Title: A macroeconomic analysis of the returns to public R&D investments 
Abstract: This paper analyses the economic returns to public R&D investments in 22 OECD
	 countries. We exploit a dataset containing time series from 1963 to 2011 and estimate
	 and compare the outcomes of different types of production function models. Robustness
	 analyses are performed to test the sensitivity of the outcomes for particular model
	 specifications, sample selections, assumptions with respect to the construction of R&D
	 stocks, and variable definitions. Analyses based on Cobb-Douglas and translog production
	 functions mostly yield statistically insignificant or negative returns. In these models
	 we control for private and foreign R&D investments and the primary production factors.
	 Models including additional controls, such as public capital, the stock of inward and
	 outward foreign direct investment, and the shares of high-tech imports and exports,
	 yield more positive returns. Our findings suggest that public R&D investments do not
	 automatically foster GDP and TFP growth. The economic return to scientific research
	 seems to depend on the specific national context.  
Keywords: science, knowledge, public R&D, economic growth, total factor productivity  
Classification-JEL: I23, O11, O40, O47 
Series: UNU-MERIT Working Papers
Creation-Date: 2015
Number: 2015-042
File-URL: https://unu-merit.nl/publications/wppdf/2015/wp2015-042.pdf
File-Format: application/pdf
File-Size: 275 kb
Handle: RePEc:unm:unumer:2015042