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From Ideas to Development: The Determinants of R&D and Patenting


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  • Florence Jaumotte
  • Nigel Pain


This paper uses panel regressions to investigate the effects of innovation policies and framework factors on business R&D intensity and patenting for a sample of 20 OECD countries over the period 1982- 2001. Both sets of factors are found to matter; the main determinants of innovativeness appear to be the availability of scientists and engineers, research conducted in the public sector (including universities), business-academic links, the degree of product market competition, a high level of financial development and access to foreign inventions. The effect of direct public financial support for business R&D is generally positive but modest, though it may larger for cash-constrained firms. Intellectual property rights appear to increase patenting significantly, but have little impact on R&D spending. Finally, the paper takes a closer look at the labour market for researchers, estimating jointly equations for employment and wages. Although the supply of scientists and engineers is eventually responsive to wage differentials, both with other professions and across countries, the evidence suggests that it may difficult to raise significantly the real amount of domestic R&D in the short run because the supply of researchers is relatively inelastic. Des idées au développement : Les déterminants de la R&D et du dépôt de brevets Ce papier examine au moyen de régressions de panel les effets des instruments de politique d’innovation et des conditions cadres sur l’intensité de recherche et développement (R&D) du secteur des entreprises et les dépôts de brevets pour un échantillon de 20 pays de l’OCDE durant la période 1982- 2001. Les deux groupes de facteurs paraissent être importants ; les principaux déterminants du degré d’innovation semblent être la disponibilité de scientifiques et ingénieurs, la recherche conduite dans le secteur public (y compris les universités), les liens entre les entreprises et le secteur académique, la concurrence dans les marchés de produits, le degré de développement du secteur financier et l’accès aux innovations réalisées à l’étranger. Le soutien financier direct aux activités de R&D des entreprises a généralement un effet positif mais modeste, bien que celui-ci puisse être plus important pour des entreprises en manque de liquidités. Les droits de propriété intellectuelle ont surtout un effet positif sur les dépôts de brevets mais peu d’impact sur les dépenses en R&D des entreprises. Finalement, le papier examine le marché du travail pour les chercheurs par le biais d’équations simultanées d’emploi et de salaires. Bien que l’offre de scientifiques et d’ingénieurs réponde à terme aux différentiels de salaires, à la fois entre professions et entre pays, les données suggèrent qu’il peut être difficile d’augmenter sensiblement la quantité réelle de R&D domestique à court terme, car l’offre de chercheurs est relativement inélastique.

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Bibliographic Info

Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 457.

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Date of creation: 02 Dec 2005
Date of revision:
Handle: RePEc:oec:ecoaaa:457-en

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Keywords: patents; scientists and engineers; science policy; research and development; framework conditions; conditions cadres; brevets; scientifiques et ingénieurs; politique d'innovation; recherche-développement;

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Cited by:
  1. Ljungwall, Christer & Gustavsson Tingvall, Patrik, 2014. "No. 233 Is China Different? A Meta-Analysis of the Growth-enhancing Effect from R&D Spending in China," Ratio Working Papers, The Ratio Institute 233, The Ratio Institute.
  2. Jones, Benjamin & Keen, Michael & Strand, Jon, 2012. "Fiscal implications of climate change," Policy Research Working Paper Series 5956, The World Bank.
  3. Boris Lokshin & Pierre Mohnen, 2007. "Measuring the Effectiveness of R&D tax credits in the Netherlands," CIRANO Working Papers 2007s-29, CIRANO.
  4. Lokshin, Boris & Mohnen, Pierre, 2010. "How effective are level-based R&D tax credits? Evidence from the Netherlands," MERIT Working Papers 040, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  5. Wang, Cong, 2013. "Can institutions explain cross country differences in innovative activity?," Journal of Macroeconomics, Elsevier, vol. 37(C), pages 128-145.
  6. Degner, Harald, 2010. "Windows of technological opportunity: do technological booms influence the relationship between firm size and innovativeness?," FZID Discussion Papers 15-2010, University of Hohenheim, Center for Research on Innovation and Services (FZID).
  7. Haskel, J & Haskel, J & Hughes, A & Bascavusoglu-Moreau, E, 2014. "The economic significance of the UK science base: a report for the Campaign for Science and Engineering," Working Papers 13751, Imperial College, London, Imperial College Business School.
  8. Michel, Julie, 2007. "The effects of FDI in R&D on home countries, the case of Switzerland," MPRA Paper 6400, University Library of Munich, Germany.
  9. Christian Dreger & Manuel Art�s & Rosina Moreno & Raúl Ramos & Jordi Suri�ach, 2007. "Study on the feasibility of a tool to measure the macroeconomic impact of structural reforms," European Economy - Economic Papers, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission 272, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
  10. Nick Johnstone & Ivan Haščič & David Popp, 2010. "Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 45(1), pages 133-155, January.
  11. Burcu Türkcan & A. Aysen Kaya, 2011. "Internationalization of Research and Development Activities: Case of European Countries And Turkey," Working Papers, Ege University, Department of Economics 1101, Ege University, Department of Economics.
  12. Rafal Kierzenkowski, 2009. "The Challenge of Restoring French Competitiveness," OECD Economics Department Working Papers 720, OECD Publishing.
  13. Sebastian Barnes & Romain Bouis & Philippe Briard & Sean Dougherty & Mehmet Eris, 2013. "The GDP Impact of Reform: A Simple Simulation Framework," OECD Economics Department Working Papers 834, OECD Publishing.
  14. Felicity C Barker & Robert A Buckle & Robert W St Clair, 2008. "Roles of Fiscal Policy in New Zealand," Treasury Working Paper Series 08/02, New Zealand Treasury.
  15. Valkonen, Laura, 2006. "Deregulation as a Means to Increase Competition and Productivity," Discussion Papers, The Research Institute of the Finnish Economy 1014, The Research Institute of the Finnish Economy.


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