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R&D, Patenting and Growth: The Role of Public Policy

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  • Ben Westmore

    (OECD)

Abstract

This paper uses panel regression techniques to assess the policy determinants of private sector innovative activity – proxied by R&D expenditure and the number of new patents – across 19 OECD countries. The relationship between innovation indicators and multifactor productivity (MFP) growth is also examined with a particular focus on the role of public policies in influencing the returns to new knowledge. The results establish an empirical link between R&D and patenting, as well as between these measures of innovation intensity and MFP growth. Innovation-specific policies such as R&D tax incentives, direct government support and patent rights are found to be successful in encouraging the innovative activities associated with higher productivity growth. However, direct empirical evidence of the positive effects of these policies on productivity is less forthcoming. A pervasive theme from the analysis is the importance of coupling policies aimed at encouraging innovation or technological adoption with well designed framework policies that allow knowledge spillovers to proliferate. In particular, the settings of framework policies relating to product market regulation, openness to trade and debtor protection in bankruptcy provisions are found to be important for the diffusion of new technologies. R&D, brevets et croissance : le rôle des politiques publiques Ce document utilise des techniques de régression en panel pour évaluer les déterminants politiques de l'activité d'innovation du secteur privé – représentée par les dépenses de R & D et le nombre de brevet - à travers 19 pays de l'OCDE. La relation entre les indicateurs de l'innovation et la croissance de la productivité multifactorielle (PMF) est également analysée avec une attention particulière sur le rôle des politiques publiques pour influencer les rendements de nouvelles connaissances. Les résultats établissent un lien empirique entre la R & D et les brevets, ainsi qu'entre ces mesures de l'intensité de l'innovation et la croissance de la PMF. Des politiques spécifiques d'innovation telles que des incitations fiscales pour la R & D, le soutien direct de l'État et les droits de brevet sont avérées efficaces pour encourager les activités innovantes associées à une plus forte croissance de la productivité. Toutefois, les preuves empiriques directes des effets positifs de ces politiques sur la productivité sont plus rares. Un thème récurrent de l'analyse est l'importance du couplage des politiques visant à encourager l'innovation ou l'adoption technologique avec des politiques-cadres bien conçues qui permettent une plus large diffusion des connaissances. En particulier, les paramètres des politiques-cadres relatives à la réglementation des marchés de produits, l'ouverture au commerce et à la protection du débiteur dans les dispositions de la faillite sont jugés importants pour la diffusion des nouvelles technologies.

Suggested Citation

  • Ben Westmore, 2013. "R&D, Patenting and Growth: The Role of Public Policy," OECD Economics Department Working Papers 1047, OECD Publishing.
  • Handle: RePEc:oec:ecoaaa:1047-en
    DOI: 10.1787/5k46h2rfb4f3-en
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    Citations

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    Cited by:

    1. Benjamin F. Jones & Lawrence H. Summers, 2020. "A Calculation of the Social Returns to Innovation," NBER Chapters, in: Innovation and Public Policy, National Bureau of Economic Research, Inc.
    2. Balázs Égert, 2018. "Regulation, Institutions and Aggregate Investment: New Evidence from OECD Countries," Open Economies Review, Springer, vol. 29(2), pages 415-449, April.
    3. Balázs Égert, 2016. "Regulation, Institutions, and Productivity: New Macroeconomic Evidence from OECD Countries," American Economic Review, American Economic Association, vol. 106(5), pages 109-113, May.
    4. Minford, Lucy & Meenagh, David, 2019. "Testing a model of UK growth: A role for R&D subsidies," Economic Modelling, Elsevier, vol. 82(C), pages 152-167.
    5. Oliver Falck & Anita Fichtl & Tobias Lohse & Friederike Welter & Heike Belitz & Cedric von der Hellen & Carsten Dreher & Carsten Schwäbe & Dietmar Harhoff & Monika Schnitzer & Uschi Backes-Gellner & C, 2019. "Steuerliche Forschungsförderung: Wichtiger Impuls für FuE-Aktivitäten oder zu wenig zielgerichtet?," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 72(09), pages 03-25, May.
    6. Maribel Guerrero & David Urbano, 2019. "Effectiveness of technology transfer policies and legislation in fostering entrepreneurial innovations across continents: an overview," The Journal of Technology Transfer, Springer, vol. 44(5), pages 1347-1366, October.
    7. Balázs Égert, 2017. "Aggregate multi-factor productivity: Measurement issues in OECD countries," OECD Economics Department Working Papers 1441, OECD Publishing.
    8. Curatola, Giuliano & Donadelli, Michael & Gioffré, Alessandro & Grüning, Patrick, 2015. "Austerity, fiscal uncertainty, and economic growth: Insights from fiscally weak EU countries," SAFE Working Paper Series 56, Leibniz Institute for Financial Research SAFE.
    9. repec:idb:idbbks:7705 is not listed on IDEAS
    10. International Monetary Fund, 2016. "Finland; Selected Issues," IMF Staff Country Reports 2016/369, International Monetary Fund.
    11. Michael Donadelli & Patrick Gruning, 2017. "Innovation Dynamics and Fiscal Policy: Implications for Growth, Asset Prices, and Welfare," Bank of Lithuania Working Paper Series 43, Bank of Lithuania.
    12. David Haugh & Alexandre Kopoin & Elena Rusticelli & David Turner & Richard Dutu, 2016. "Cardiac Arrest or Dizzy Spell: Why is World Trade So Weak and What can Policy Do About It?," OECD Economic Policy Papers 18, OECD Publishing.
    13. Alessandro Sterlacchini & Francesco Venturini, 2019. "R&D tax incentives in EU countries: does the impact vary with firm size?," Small Business Economics, Springer, vol. 53(3), pages 687-708, October.
    14. Ma, Chang, 2020. "Financial stability, growth and macroprudential policy," Journal of International Economics, Elsevier, vol. 122(C).
    15. Åsa Johansson, 2016. "Public Finance, Economic Growth and Inequality: A Survey of the Evidence," OECD Economics Department Working Papers 1346, OECD Publishing.
    16. Chen, Ping-ho & Chu, Hsun & Lai, Ching-Chong, 2015. "Do R&D subsidies necessarily stimulate economic growth?," MPRA Paper 66061, University Library of Munich, Germany.
    17. Daniel NEICU, 2019. "Evaluating the Effects of an R&D Policy Mix of Subsidies and Tax Credits," Management and Economics Review, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 4(2), pages 1-13, June.
    18. Balashova, Svetlana, 2015. "The impact of public R&D policy on business-funded R&D (case of OECD countries)," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 64-82.
    19. Maza, Adolfo & Villaverde, José & Hierro, María, 2014. "Should cohesion policy focus on fostering R&D? Evidence from Spain," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 29, pages 139-164.
    20. Gabriel Casaburi & Gustavo Crespi & Ignacio L. De León & José Fernández & Lucas Figal Garone & Matteo Grazzi & Carlos Guaipatín & Jorge Katz & Juan J. Llisterri & Alessandro Maffioli & Juan Carlos Nav, 2016. "La política de innovación en América Latina y el Caribe: Nuevos caminos," IDB Publications (Books), Inter-American Development Bank, number 94816 edited by Juan Carlos Navarro & Jocelyn Olivari, February.
    21. Ismet GOCER & Sedat ALATAS & Osman PEKER, 2016. "Effects of R&D and innovation on income in EU countries: new generation panel cointegration and causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(609), W), pages 153-164, Winter.
    22. Randall Jones & Yosuke Jin, 2017. "Boosting productivity for inclusive growth in Japan," OECD Economics Department Working Papers 1414, OECD Publishing.
    23. Pfeiffer, Olena & Spengel, Christoph, 2017. "Tax incentives for research and development and their use in tax planning," ZEW Discussion Papers 17-046, ZEW - Leibniz Centre for European Economic Research.
    24. Zuzana Smidova, 2015. "Policy areas for increasing productivity in Latvia," OECD Economics Department Working Papers 1255, OECD Publishing.

    More about this item

    Keywords

    croissance de la productivité multifactorielle (PMF); immobilisations incorporelles; innovation; innovations; intangible assets; politiques publiques; productivity growth; public policy;
    All these keywords.

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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