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Basic Research and International Spillovers

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  • Mark Funk

Abstract

This paper discriminates between basic and developmental research when estimating international research spillovers between nine OECD nations. Using panel cointegration techniques, the estimates show that basic research generates much larger international spillovers than developmental research. Developmental research in turn appears more easily appropriated by the research performer, and thus has a stronger effect domestically. These results suggest growth models should incorporate the firm's choice between basic and developmental research. More importantly, since basic research receives a large proportion of its funding from public sources, the finding of large international spillovers from basic research suggests current public research policies should be reevaluated. The results support the argument in favor of increased international coordination of basic research policies.

Suggested Citation

  • Mark Funk, 2002. "Basic Research and International Spillovers," International Review of Applied Economics, Taylor & Francis Journals, vol. 16(2), pages 217-226.
    • Handle: RePEc:taf:irapec:v:16:y:2002:i:2:p:217-226
    DOI: 10.1080/02692170110118911
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    Cited by:

    1. Daniel Gama e Colombo & Jorge Martinez-Vazquez, 2018. "Fiscal Decentralization and Public R&D Policy: A Country Panel Analysis," International Center for Public Policy Working Paper Series, at AYSPS, GSU paper1820, International Center for Public Policy, Andrew Young School of Policy Studies, Georgia State University.
    2. Reiljan, Janno & Paltser, Ingra, 2013. "The implementation of research and development policy in European and Asian countries," Discourses in Social Market Economy 2013-03, OrdnungsPolitisches Portal (OPO).
    3. Gersbach, Hans & Sorger, Gerhard & Amon, Christian, 2018. "Hierarchical growth: Basic and applied research," Journal of Economic Dynamics and Control, Elsevier, vol. 90(C), pages 434-459.
    4. Kleer, Robin, 2010. "Government R&D subsidies as a signal for private investors," Research Policy, Elsevier, vol. 39(10), pages 1361-1374, December.
    5. Lacetera, Nicola & Zirulia, Lorenzo, 2012. "Individual preferences, organization, and competition in a model of R&D incentive provision," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 550-570.
    6. Robin Kleer, 2008. "Government R&D Subsidies as a Signal for Private Investors," Working Papers 066, Bavarian Graduate Program in Economics (BGPE).
    7. Carboni, Oliviero A., 2017. "The effect of public support on investment and R&D: An empirical evaluation on European manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 282-295.
    8. Gersbach, Hans & Sorger, Gerhard & Amon, Christian, 2018. "Hierarchical growth: Basic and applied research," Journal of Economic Dynamics and Control, Elsevier, vol. 90(C), pages 434-459.

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