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Externalities of R&D Expenditures


  • Erik Dietzenbacher
  • Bart Los


Innovation is generally recognized as a major source of economic growth. R&D investments explicitly aim at generating innovations and creating knowledge. Since knowledge has certain public good properties, positive externalities are likely to exist. In this paper, we extend well-known concepts from the input-output literature (backward multipliers) to indicate at which commodities stimuli should be targeted to enhance R&D and its positive externalities in the economy as a whole. Next, we argue that there may also be negative externalities of R&D, due to increased prices. This issue can be studied by means of forward multipliers. Both concepts are applied to the United States, 1977-90.

Suggested Citation

  • Erik Dietzenbacher & Bart Los, 2002. "Externalities of R&D Expenditures," Economic Systems Research, Taylor & Francis Journals, vol. 14(4), pages 407-425.
  • Handle: RePEc:taf:ecsysr:v:14:y:2002:i:4:p:407-425 DOI: 10.1080/0953531022000024860

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    References listed on IDEAS

    1. Sonis, Michael & Hewings, Geoffrey J.D., 1993. "Hierarchies of Regional Sub-Structures and Their Multipliers within Input-output Systems Miyazawa Revisited," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 34(1), pages 33-44, June.
    2. Cella, Guido, 1984. "The Input-Output Measurement of Interindustry Linkages," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 46(1), pages 73-84, February.
    3. Michael Sonis & J. D. Hewings & Jiemin Guo, 2000. "A New Image of Classical Key Sector Analysis: Minimum Information Decomposition of the Leontief Inverse," Economic Systems Research, Taylor & Francis Journals, vol. 12(3), pages 401-423.
    4. Cella, Guido, 1986. "The Input-Output Measurement of Interindustry Linkages: A Reply," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 48(4), pages 379-384, November.
    5. Clements, Benedict J., 1990. "On the decomposition and normalization of interindustry linkages," Economics Letters, Elsevier, vol. 33(4), pages 337-340, August.
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    Cited by:

    1. Athena Belegri-Roboli & Panayotis Michaelides, 2005. "Measurement of R&D Multipliers: The Case of Greece," The Journal of Technology Transfer, Springer, vol. 30(3), pages 327-332, July.
    2. Brautzsch, Hans-Ulrich & Günther, Jutta & Loose, Brigitte & Ludwig, Udo & Nulsch, Nicole, 2015. "Can R&D subsidies counteract the economic crisis? – Macroeconomic effects in Germany," Research Policy, Elsevier, vol. 44(3), pages 623-633.
    3. Massón-Guerra, José Luis & Vendrell-Ferrero, Ferran, 2008. "Entrepreneurship Spillover and the determinants of Key Sectors for new business creation: An inter-sectorial approach," MPRA Paper 10748, University Library of Munich, Germany.
    4. Massón-Guerra, José Luis, 2008. "The Multipliers and Key Sectors of Entrepreneurship Spillover: An input-output approach," MPRA Paper 10733, University Library of Munich, Germany.
    5. Giovanni Cerulli & Bianca Poti`, 2009. "Measuring Intersectoral Knowledge Spillovers: An Application Of Sensitivity Analysis To Italy," Economic Systems Research, Taylor & Francis Journals, vol. 21(4), pages 409-436.
    6. Barbara Diaz & Laura Moniche & Antonio Morillas, 2006. "A Fuzzy clustering approach to the key sectors of the Spanish economy," Economic Systems Research, Taylor & Francis Journals, vol. 18(3), pages 299-318.
    7. Massón Guerra, José Luis, 2007. "El capital empresarial como determinante de la productividad y el crecimiento en España
      [The Impact of Entrepreneurship Capital on Spanish's Labor Productivity and Economic Growth]
      ," MPRA Paper 4073, University Library of Munich, Germany.
    8. Julio Sanchez-Choliz & Rosa Duarte, 2003. "Production Chains and Linkage Indicators," Economic Systems Research, Taylor & Francis Journals, vol. 15(4), pages 481-494.
    9. Mikuláš Luptáčik & Wolfgang Koller & Bernhard Mahlberg & Herwig W. Schneider, 2008. "Growth and Employment Potentials of Chosen Technology Fields," Czech Economic Review, Charles University Prague, Faculty of Social Sciences, Institute of Economic Studies, vol. 2(1), pages 041-075, March.


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