IDEAS home Printed from https://ideas.repec.org/p/bea/papers/0019.html
   My bibliography  Save this paper

R&D in the National Income and Product Accounts: A First Look at its Effect on GDP

Author

Listed:
  • Barbara M. Fraumeni
  • Sumiye Okubo

    (Bureau of Economic Analysis)

Abstract

According to the estimates in this paper, R&D is a significant contributor to economic growth. Over the forty-year period studied, 1961-2000, returns to R&D capital accounted for 10 percent of growth in real GDP. Treating R&D as an investment raises the national savings rate by two percentage points from 19 to 21 percent. This paper is a preliminary and exploratory examination of the role of R&D in the U.S. economy. It extends the National Income and Product Accounts (NIPA) framework by treating R&D as an investment and imputing a net return to general government capital. Capitalizing R&D investment has a small positive effect on the rate of growth of GDP. There is a significant effect on the distribution of consumption and investment on the product-side and the distribution of property-type income and labor income on the income-side. Most importantly, the partial R&D satellite account developed in this paper increases our understanding of the sources of economic growth.

Suggested Citation

  • Barbara M. Fraumeni & Sumiye Okubo, 2002. "R&D in the National Income and Product Accounts: A First Look at its Effect on GDP," BEA Papers 0019, Bureau of Economic Analysis.
  • Handle: RePEc:bea:papers:0019
    as

    Download full text from publisher

    File URL: https://www.bea.gov/papers/pdf/R&D-NIPA.pdf
    Download Restriction: no

    More about this item

    JEL classification:

    • E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

    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:bea:papers:0019. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Bryn Whitmire). General contact details of provider: http://edirc.repec.org/data/beagvus.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.