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R&D and Development

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Author Info
William F. Maloney
Daniel Lederman

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Abstract

This paper employs a new global panel data set on innovation related variables to examine patterns of R&D investment across the development process. We find that R&D effort measured as a share of GDP rises with development at an increasing rate, but that several countries have experienced extraordinary “take offs†relative to the median tendency. Our estimates of the rates of return to R&D suggest that these efforts are justified. Moreover, the returns to R&D appear higher for developing countries. Differences in financial depth, protection of intellectual property rights, government capacity to mobilize resources, and the quality of research institutions appear as the main reasons that developing countries invest less despite higher returns. Finally, natural resource abundant countries show higher returns to R&D although lower overall investment.

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Publisher Info
Paper provided by Econometric Society in its series Econometric Society 2004 Latin American Meetings with number 216.

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Date of creation: 11 Aug 2004
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Handle: RePEc:ecm:latm04:216

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Related research
Keywords: Innovation; R&D;

Find related papers by JEL classification:
O1 - Economic Development, Technological Change, and Growth - - Economic Development
O3 - Economic Development, Technological Change, and Growth - - Technological Change
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O5 - Economic Development, Technological Change, and Growth - - Economywide Country Studies

Cited by:
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  1. Gabriel Sánchez & Ricardo Rozemberg & Inés Butler & Hernán Rufo, 2008. "The Emergence of New Successful Export Activities in Argentina: Self-Discovery, Knowledge Niches, or Barriers to Riches?," RES Working Papers 3254, Inter-American Development Bank, Research Department. [Downloadable!]
  2. Andrés Rodríguez-Clare, 2005. "Innovation and Technology Adoption in Central America," RES Working Papers 4395, Inter-American Development Bank, Research Department. [Downloadable!]
  3. Léger, Andréanne, 2006. "Intellectual Property Rights and Innovation in Developing Countries: Evidence from Panel Data," Proceedings of the German Development Economics Conference, Berlin 2006 17, Verein für Socialpolitik, Research Committee Development Economics. [Downloadable!]
    Other versions:
  4. Martin Falk, 2004. "What Drives Business R&D Intensity Across OECD Countries?," WIFO Working Papers 236, WIFO. [Downloadable!]
  5. Andrés Rodríguez-Clare, 2005. "Adopción de innovación y tecnologías en Centroamérica," RES Working Papers 4396, Inter-American Development Bank, Research Department. [Downloadable!]
  6. Lederman, Daniel & Saenz, Laura, 2005. "Innovation and development around the world, 1960-2000," Policy Research Working Paper Series 3774, The World Bank. [Downloadable!]
  7. Chen, Derek H. C. & Dahlman, Carl J., 2004. "Knowledge and development : a cross-section approach," Policy Research Working Paper Series 3366, The World Bank. [Downloadable!]
  8. Almeida, Rita & Fernandes, Ana Margarida, 2006. "Openness and technological innovations in developing countries : evidence from firm-level surveys," Policy Research Working Paper Series 3985, The World Bank. [Downloadable!]
    Other versions:
  9. Juan Carlos Cordoba & Marla Ripoll, 2005. "Endogenous TFP and Cross-Country Income Differences," Development and Comp Systems 0512018, EconWPA. [Downloadable!]
    Other versions:
  10. Eskander Alvi & Debasri Mukherjee & Ashraf Eid, 2007. "Do Patent Protection and Technology Transfer Facilitate R&D in Developed and Emerging Countries? A Semiparametric Study," Atlantic Economic Journal, International Atlantic Economic Society, vol. 35(2), pages 217-231, June. [Downloadable!] (restricted)
  11. Hiau Looi Kee & Chen, Derek H. C., 2005. "A model on knowledge and endogenous growth," Policy Research Working Paper Series 3539, The World Bank. [Downloadable!]
  12. Rena, Ravinder, 2006. "Higher Education In Africa – A Case Of Eritrea," MPRA Paper 10580, University Library of Munich, Germany. [Downloadable!]
Statistics
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