IDEAS home Printed from https://ideas.repec.org/p/gpe/wpaper/19096.html
   My bibliography  Save this paper

Innovation, job creation and productivity: implications for public policy

Author

Listed:
  • Ugur, Mehmet

Abstract

Direct and indirect public support (subsidies and tax relief) for business R&D in the UK is higher than most other OECD countries. Nevertheless, total business R&D expenditure as percentage of GDP in the UK (1.7%) is relatively low compared to OECD countries (2.43%). This policy brief summarizes the findings from an ESRC-funded research project on productivity and employment effects of R&D investment; and on whether direct public support has had additionality effects in terms of increasing the funded firms’ R&D investment. The findings suggest that the bot the effects of R&D on productivity and employment and the effect of subsidies on private R&D effort are heterogeneous and non-linear. Therefore, we call for well-targeted R&D subsidies, new conditionality clauses taking account of past performance, and industry-specific targets for R&D investment.

Suggested Citation

  • Ugur, Mehmet, 2018. "Innovation, job creation and productivity: implications for public policy," Greenwich Papers in Political Economy 19096, University of Greenwich, Greenwich Political Economy Research Centre.
    • Handle: RePEc:gpe:wpaper:19096
    as

    Download full text from publisher

    File URL: http://gala.gre.ac.uk/id/eprint/19096/1/Ugur_PB_20_2018.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ugur, Mehmet & Trushin, Esref & Solomon, Edna M., 2015. "UK and EU subsidies and private R&D investment: Is there input additionality?," Greenwich Papers in Political Economy 14082, University of Greenwich, Greenwich Political Economy Research Centre.
    2. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna, 2016. "A firm-level dataset for analyzing entry, exit, employment and R&D expenditures in the UK: 1997–2012," Greenwich Papers in Political Economy 15556, University of Greenwich, Greenwich Political Economy Research Centre.
    3. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna & Guidi, Francesco, 2016. "R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis," Research Policy, Elsevier, vol. 45(10), pages 2069-2086.
    4. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna, 2016. "Inverted-U relationship between R&D intensity and survival: Evidence on scale and complementarity effects in UK data," Research Policy, Elsevier, vol. 45(7), pages 1474-1492.
    5. Solomon, Edna M. & Ugur, Mehmet & Guidi, Francesco & Trushin, Esref, 2015. "Variations in the effect of R&D investment on firm productivity: UK evidence," Greenwich Papers in Political Economy 14081, University of Greenwich, Greenwich Political Economy Research Centre.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trushin, Eshref & Ugur, Mehmet, 2018. "Ecosystem complexity, firm learning and survival: UK evidence on intra-industry age and size diversity as exit hazards," Greenwich Papers in Political Economy 19095, University of Greenwich, Greenwich Political Economy Research Centre.
    2. Zouaghi, Ferdaous & Sánchez, Mercedes & Martínez, Marian García, 2018. "Did the global financial crisis impact firms' innovation performance? The role of internal and external knowledge capabilities in high and low tech industries," Technological Forecasting and Social Change, Elsevier, vol. 132(C), pages 92-104.
    3. Bretschger, Lucas, 2021. "Getting the Costs of Environmental Protection Right: Why Climate Policy Is Inexpensive in the End," Ecological Economics, Elsevier, vol. 188(C).
    4. Cristiano Antonelli & Christophe Feder, 2022. "Knowledge properties and the creative response in the global economy: European evidence for the years 1990–2016," The Journal of Technology Transfer, Springer, vol. 47(2), pages 459-475, April.
    5. Garcia Martinez, Marian & Zouaghi, Ferdaous & Garcia Marco, Teresa & Robinson, Catherine, 2019. "What drives business failure? Exploring the role of internal and external knowledge capabilities during the global financial crisis," Journal of Business Research, Elsevier, vol. 98(C), pages 441-449.
    6. Neves, Pedro Cunha & Afonso, Oscar & Silva, Diana & Sochirca, Elena, 2021. "The link between intellectual property rights, innovation, and growth: A meta-analysis," Economic Modelling, Elsevier, vol. 97(C), pages 196-209.
    7. Dimos, Christos & Pugh, Geoff & Hisarciklilar, Mehtap & Talam, Ema & Jackson, Ian, 2022. "The relative effectiveness of R&D tax credits and R&D subsidies: A comparative meta-regression analysis," Technovation, Elsevier, vol. 115(C).
    8. repec:wly:econjl:v::y:2017:i:605:p:f236-f265 is not listed on IDEAS
    9. Mehmet Ugur & Sefa Awaworyi Churchill & Edna Solomon, 2018. "Technological Innovation And Employment In Derived Labour Demand Models: A Hierarchical Meta†Regression Analysis," Journal of Economic Surveys, Wiley Blackwell, vol. 32(1), pages 50-82, February.
    10. Ugur, Mehmet & Trushin, Eshref, 2018. "Asymmetric information and heterogeneous effects of R&D subsidies: evidence on R&D investment and employment of R&D personel," Greenwich Papers in Political Economy 21943, University of Greenwich, Greenwich Political Economy Research Centre.
    11. Nicola Del Sarto & Alberto Di Minin & Giulio Ferrigno & Andrea Piccaluga, 2021. "Born global and well educated: start-up survival through fuzzy set analysis," Small Business Economics, Springer, vol. 56(4), pages 1405-1423, April.
    12. Claudiu Tiberiu Albulescu & Camélia Turcu, 2022. "Productivity, financial performance, and corporate governance: evidence from Romanian R&D firms," Applied Economics, Taylor & Francis Journals, vol. 54(51), pages 5956-5975, November.
    13. Juha‐Antti Lamberg & Mirva Peltoniemi, 2020. "The nanoeconomics of firm‐level decision‐making and industry evolution: Evidence from 200 years of paper and pulp making," Strategic Management Journal, Wiley Blackwell, vol. 41(3), pages 499-529, March.
    14. Irfan Kanat & Yili Hong & T. S. Raghu, 2018. "Surviving in Global Online Labor Markets for IT Services: A Geo-Economic Analysis," Information Systems Research, INFORMS, vol. 29(4), pages 893-909, December.
    15. Davide Castellani & Mariacristina Piva & Torben Schubert & Marco Vivarelli, 2018. "The source of the US /EU Productivity Gap:Less and less effective R&D," LEM Papers Series 2018/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    16. Kazeminia, Ali, 2021. "Unfolding the airbus’ strategic growth: A successful case," Scandinavian Journal of Management, Elsevier, vol. 37(1).
    17. Emanuela Carbonara & Giuseppina Gianfreda & Enrico Santarelli & Giovanna Vallanti, 2021. "The impact of intellectual property rights on labor productivity: do constitutions matter? [Research and development in the growth process]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(4), pages 884-904.
    18. Matilde Cardoso & Pedro Cunha Neves & Oscar Afonso & Elena Sochirca, 2021. "The effects of offshoring on wages: a meta-analysis," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 157(1), pages 149-179, February.
    19. MARSCHINSKI Robert & DE AMORES HERNANDEZ Antonio & AMOROSO Sara & BAUER Peter & CARDANI Roberta & CSEFALVAY Zoltan & GENTY Aurelien & GKOTSIS Petros & GREGORI Wildmer & GRASSANO Nicola & HERNANDEZ GUE, 2021. "EU competitiveness: recent trends, drivers, and links to economic policy: A Synthesis Report," JRC Research Reports JRC123232, Joint Research Centre.
    20. Castellani, Davide & Piva, Mariacristina & Schubert, Torben & Vivarelli, Marco, 2019. "R&D and productivity in the US and the EU: Sectoral specificities and differences in the crisis," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 279-291.
    21. Paul Schreyer & María Belén Zinni, 2021. "Productivity Measurement, R&D Assets, and Mark‐Ups in OECD Countries," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(4), pages 787-809, December.

    More about this item

    Keywords

    Innovation; R&D; Employment; Productivity; Public Policy;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gpe:wpaper:19096. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Nadine Edwards (email available below). General contact details of provider: https://edirc.repec.org/data/pegreuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.