Template-type: ReDif-Paper 1.0 Author-Name: Ziesemer, Thomas Author-workplace-name: RS: GSBE MORSE, Macro, International & Labour Economics Title: Mission-oriented R&D and growth of Japan 1988-2016 Abstract: We analyze the dynamic interaction of Japan's total factor productivity (TFP), GDP, stocks of domestic and foreign private and public as well as mission-oriented R&D, called GBARD in OECD statistics, in a vector-error-correction model (VECM) for Japan with stock data for the period 1987-2016. Permanent policy changes show the following main results: (i) GBARD as well as private and public R&D each encourage growth rates of the other R&D stocks and of TFP and GDP, and all have high internal rates of return; (ii) Japan's R&D policies affect and are affected by foreign R&D; in particular, Japan's public R&D has a positive impact on European private R&D, whereas other OECD countries' R&D has a negative one; (iii) permanent foreign public R&D changes are detrimental to Japan's growth of TFP and GDP. Japan's R&D policies should be supported by education policies enhancing especially the number of PhDs and IT personnel.
Classification-JEL: f43,o19,o47,o53 Series: UNU-MERIT Working Papers Creation-Date: 20221020 Number: 2022-034 File-URL: https://cris.maastrichtuniversity.nl/ws/files/110001664/wp2022_034.pdf File-Format: application/pdf File-Size: 1719739 Handle: Repec:unm:unumer:2022034 DOI: