R&D expenditures and U.S. economic growth: A disaggregated approach
AbstractBased on U.S. data for the 48-year-period 1953-2000, this study makes a contribution on the R&D-growth relation along five dimensions. First, we note several descriptive patterns that may be regarded as stylized facts relative to R&D outlays in the U.S. during the half-century period. These include (a) a dramatic increase in the share of non-federal R&D outlays, (b) a corresponding decline in the share of federally funded R&D expenditure, and (c) an even more dramatic decline in the share of defense R&D spending. Second, in a departure from most of the literature on the topic, we study the R&D-growth nexus at a disaggregated level by considering the roles of federal, non-federal, and defense R&D outlays. Third, we use the relatively new bounds-testing and ARDL (autoregressive distributed lag) procedures of Pesaran et al. [Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289-326] to estimate the (long run) relation between R&D outlays and growth in a fairly standard model. Fourth, contrary to the almost universal belief, our estimates indicate a larger role of federal R&D relative to non-federal R&D in growth, and also a stronger role of defense R&D than of non-defense (federal) R&D. Last, to the extent our estimates are reasonable, the above-noted temporal movements in the shares of federal, non-federal, and defense R&D outlays seem to reflect socially perverse trends in the context of economic growth and well-being, and indicate the need for appropriate policy interventions for a substantial enhancement of federal defense R&D and non-defense R&D outlays.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Policy Modeling.
Volume (Year): 30 (2008)
Issue (Month): 2 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505735
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Mario Coccia, 2012. "What are the effects of public debt on innovation and employment growth?," CERIS Working Paper 201206, Institute for Economic Research on Firms and Growth - Moncalieri (TO).
- Stéphane Auray & Aurélien Eyquem & Fréderic Jouneau-Sion, 2011. "Wars as Large Depreciation Shocks," Working Papers 2012-30, Centre de Recherche en Economie et Statistique.
- Claudia Capozza & Angela Stefania Bergantino & Angela De Carlo, 2013. "The Role of Transport Infrastructures in determining Technical Efficiency in R&D activity of Italian regions. A double-bootstrapped DEA procedure," ERSA conference papers ersa13p1052, European Regional Science Association.
- Gurgul, Henryk & Lach, Łukasz, 2012. "Technological progress and economic growth: evidence from Poland," MPRA Paper 52279, University Library of Munich, Germany.
- Angus C. Chu, 2010.
"Effects of Patent Policy on Income and Consumption Inequality in a R&D Growth Model,"
Southern Economic Journal,
Southern Economic Association, vol. 77(2), pages 336-350, October.
- Chu, Angus C., 2008. "Effects of Patent Policy on Income and Consumption Inequality in an R&D-Growth Model," MPRA Paper 10168, University Library of Munich, Germany.
- Andrés, Antonio R. & Goel, Rajeev K., 2012. "Does software piracy affect economic growth? Evidence across countries," Journal of Policy Modeling, Elsevier, vol. 34(2), pages 284-295.
- Chu, Angus C. & Lai, Ching-Chong, 2009. "Defense R&D: Effects on Economic Growth and Social Welfare," MPRA Paper 16325, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.