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Business R&D, Innovation and Economic Growth: An Evidence-Based Synthesis of the Policy Issues

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  • Davis, Nick

    (Martin, Jenkins and Associates Limited)

Abstract

There is strong theoretical and empirical support linking business research and development, innovation and productivity growth at a national level. There is also strong evidence of spillovers from business R&D. The magnitude of these spillovers is economically significant and warrants subsidies. Evidence also suggests that a mix of discretionary and non-discretionary policies is likely to be required. New Zealand looks increasingly unusual in the OECD in terms of its sole reliance on discretionary grants for business R&D. This paper proposes implementing a well-designed non-discretionary R&D assistance scheme aimed at stimulating a sustained increase in levels of business R&D.

Suggested Citation

  • Davis, Nick, 2006. "Business R&D, Innovation and Economic Growth: An Evidence-Based Synthesis of the Policy Issues," Occasional Papers 06/8, Ministry of Economic Development, New Zealand.
    • Handle: RePEc:ris:nzmedo:2006_008
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    References listed on IDEAS

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    Cited by:

    1. Procter, Roger, 2008. "Inside the Black box: Policies for Economic Growth," Occasional Papers 08/8, Ministry of Economic Development, New Zealand.
    2. Procter, Roger, 2011. "Echanching Productivity: Towards an Updated Action Agenda," Occasional Papers 11/1, Ministry of Economic Development, New Zealand.

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    More about this item

    Keywords

    innovation; research & development; economic growth;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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