Returns on R&D investment: A comprehensive survey on the magnitude and evaluation methodologies
As technology and innovation seem to be contingent upon each other a great deal of attention has been given to the importance of assessing the contribution of R&D investment to firm and industry performance and, ultimately, to the economic performance of countries and regions. In industrialised societies not only private but also public agents have allocated increasing amounts of their resources to R&D activities, often considered the key path to innovativeness. At the same time, due to advances in empirical research, increasingly more focused on the micro (firms) rather than on the macro (country) level, old myths about the relationship between R&D, innovation and success began to fall down. Firstly, the idea that innovation is much broader than R&D has gained large support and has made it possible to identify other sources of innovation, beyond excellence in R&D, which had been largely hidden or neglected. As result, perceptions about small firms - or the so-called low-tech industries, which either do not carry out any significant R&D activities or are likely to perform them outside formal classifications - started to change. Secondly, the idea that more R&D investment is always automatically bond to success - whatever criteria one may choose to define success – has become nothing more than a utopia. In this paper we carry out an analysis of the literature on the magnitude and evaluation of R&D, and, possibly, of innovation. We identify the methodologies used and analyse to what extent the magnitude of (eventual) R&D returns is dependent on the methodology pursued and the level of analysis - firms (micro), industry (meso), and regions/countries (macro) - considered. We conclude that methodological approaches and levels of analysis determine, to a certain extent, the type of results obtained and, thus, variances between them.
|Date of creation:||Mar 2009|
|Date of revision:|
|Contact details of provider:|| Postal: Rua Dr. Roberto Frias, 378, 4200-465, Porto, Portugal|
Web page: http://www.inescporto.pt/uitt
|Order Information:|| Postal: Rua Dr. Roberto Frias, 378, 4200-465, Porto, Portugal|
Web: http://www.inescporto.pt/uitt Email:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bougrain, Frederic & Haudeville, Bernard, 2002. "Innovation, collaboration and SMEs internal research capacities," Research Policy, Elsevier, vol. 31(5), pages 735-747, July.
- Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-90, September.
- Del Monte, Alfredo & Papagni, Erasmo, 2003. "R&D and the growth of firms: empirical analysis of a panel of Italian firms," Research Policy, Elsevier, vol. 32(6), pages 1003-1014, June.
- repec:cmi:wpaper:cemi-report-2006-009 is not listed on IDEAS
- Aurora Teixeira & Natércia Fortuna, 2003. "Human Capital, Innovation Capability and Economic Growth," FEP Working Papers 131, Universidade do Porto, Faculdade de Economia do Porto.
- Bronwyn H. Hall & Jacques Mairesse, 1992.
"Exploring the Relationship Between R&D and Productivity in French Manufacturing Firms,"
NBER Working Papers
3956, National Bureau of Economic Research, Inc.
- Hall, Bronwyn H. & Mairesse, Jacques, 1995. "Exploring the relationship between R&D and productivity in French manufacturing firms," Journal of Econometrics, Elsevier, vol. 65(1), pages 263-293, January.
- Beñat Bilbao-Osorio & Andrés Rodríguez-Pose, 2004. "From R&D to Innovation and Economic Growth in the EU," Growth and Change, Wiley Blackwell, vol. 35(4), pages 434-455.
- Howells, Jeremy, 2005. "Innovation and regional economic development: A matter of perspective?," Research Policy, Elsevier, vol. 34(8), pages 1220-1234, October.
- Bernstein, Jeffrey I, 1989. "The Structure of Canadian Inter-industry R&D Spillovers, and the Rates of Return to R&D," Journal of Industrial Economics, Wiley Blackwell, vol. 37(3), pages 315-28, March.
When requesting a correction, please mention this item's handle: RePEc:inc:wpaper:2009-03-wp1. 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: (Andreia Passos)
If references are entirely missing, you can add them using this form.