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Economic growth and R&D investment: An empirical analysis of Russian regions

Author

Listed:
  • Raetskiy, A.

    (Independent researcher, Saint Petersburg, Russia)

  • Tereshchenko, D.

    (National Research University Higher School of Economics (HSE University), Saint Petersburg, Russia)

Abstract

Investment in R&D is a major driver of economic growth. Its impact on economic growth is formed from the direct effect and spillover effect, due to which investments in a particular region affect the development of nearby regions. The paper employs real GRP and R&D capital stock as indicators of economic growth and investment in R&D. Real GRP and R&D capital stock are estimated using the perpetual inventory method. To obtain quantitative estimates, static and dynamic spatial Durbin models are applied on Rosstat panel data for 76 Russian regions in the period 2001-2021. Models are estimated via quasi-maximum likelihood. The results indicate the presence of both short-term and long-term direct impact of R&D capital on real GRP. At the same time, only several model specifications indicate the presence of a spillover effect. This result coincides with previous studies that noted weak linkages between Russian regions and insufficient efficiency of the Russian R&D sector.

Suggested Citation

  • Raetskiy, A. & Tereshchenko, D., 2025. "Economic growth and R&D investment: An empirical analysis of Russian regions," Journal of the New Economic Association, New Economic Association, vol. 67(2), pages 46-64.
    • Handle: RePEc:nea:journl:y:2025:i:67:p:46-64
    DOI: 10.31737/22212264_2025_2_46-64
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    More about this item

    Keywords

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    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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