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Natural resources and innovation: Is the R&D sector cursed too?

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  • Kamguia, Brice
  • Keneck-Massil, Joseph
  • Nvuh-Njoya, Youssouf
  • Tadadjeu, Sosson

Abstract

There is a large body of work documenting the non-consensual effects of natural resources. Despite this extensive literature and the importance of innovation on economic outcomes, surprisingly little is known about the effect of natural resources on the research sector. This study proposes to fill this gap by examining the effect of natural resources on research and development expenditure. Using data from 82 developed and developing countries, we show that natural resources have on average a negative effect on research and development investment. We also find that natural resources are negatively associated with research and development expenditure in the public sector, higher education, and business sector. Distinguishing between different natural resources, we find that only point resources have a negative effect on the priorities given to research investments. Nevertheless, our results show that institutional quality and human capital are mechanisms to mitigate this trend.

Suggested Citation

  • Kamguia, Brice & Keneck-Massil, Joseph & Nvuh-Njoya, Youssouf & Tadadjeu, Sosson, 2022. "Natural resources and innovation: Is the R&D sector cursed too?," Resources Policy, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:jrpoli:v:77:y:2022:i:c:s0301420722001738
    DOI: 10.1016/j.resourpol.2022.102725
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    More about this item

    Keywords

    Natural resources; Innovation; Institutions; Human capital;
    All these keywords.

    JEL classification:

    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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