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Perspective: Determining Research And Development Expenditure Targets Based On An Affordability Index

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  • DAVID R. WALWYN

    (School of Engineering and Technology Management, University of Pretoria, South Africa)

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    Abstract

    Gross domestic expenditure on research and development (GERD), usually expressed as a percentage of gross domestic product (GDP), is a widely used indicator to reflect the research intensity within a national economy, and hence its capacity to develop new and innovative products or services. It is also used as a key target in the management of national innovation systems. For instance, the South African National Research and Development Strategy set a target of raising GERD/GDP to 'somewhat over 1%', and in 2002 the Barcelona European Council set an EU target of 3%. Despite its widespread usage, there is little discussion or agreement on how this target should be derived within a broad range of economic contexts and levels of affordability. In this paper, a composite indicator based on GERD/GDP, normalised for GDP per capita, is developed and its use in a number of countries explored and explained. As a result, a set of GERD/GDP targets for various categories of developing countries is proposed.

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    Bibliographic Info

    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal International Journal of Innovation and Technology Management.

    Volume (Year): 07 (2010)
    Issue (Month): 02 ()
    Pages: 183-191

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    Handle: RePEc:wsi:ijitmx:v:07:y:2010:i:02:p:183-191

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    Keywords: Gross domestic expenditure; research and development; indicators; developing countries; investment target;

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