What is the optimal rate of R&D investment to maximize productivity growth? |
| |
Authors: | Mario Coccia [Author Vitae] |
| |
Institution: | National Research Council of Italy (CERIS-CNR) and Max Planck Institute of Economics, Germany |
| |
Abstract: | Governments in modern economies devote much policy attention to enhancing productivity and continue to emphasize its drivers such as investment in R&D. This paper analyzes the relationship between productivity growth and levels of R&D investments. The econometric analysis shows that more than 65 per cent of productivity growth variance is due to its dependence on gross domestic expenditure on R&D expressed as percentage of GDP (GERD). Economic analysis shows that productivity growth = f(GERD) is a concave function downwards due to diminishing returns to research investments. In addition, the research shows that the range of GERD between 2.3 per cent and 2.6 per cent maximizes the long-run impact on productivity growth and it is the key to sustained productivity and technology improvements that are becoming more and more necessary to modern economic growth. |
| |
Keywords: | E60 H50 O40 O57 |
本文献已被 ScienceDirect 等数据库收录! |