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From Ideas to Development: The Determinants of R&D and Patenting

  • Florence Jaumotte
  • Nigel Pain

This paper uses panel regressions to investigate the effects of innovation policies and framework factors on business R&D intensity and patenting for a sample of 20 OECD countries over the period 1982- 2001. Both sets of factors are found to matter; the main determinants of innovativeness appear to be the availability of scientists and engineers, research conducted in the public sector (including universities), business-academic links, the degree of product market competition, a high level of financial development and access to foreign inventions. The effect of direct public financial support for business R&D is generally positive but modest, though it may larger for cash-constrained firms. Intellectual property rights appear to increase patenting significantly, but have little impact on R&D spending. Finally, the paper takes a closer look at the labour market for researchers, estimating jointly equations for employment and wages. Although the supply of scientists and engineers is eventually responsive to wage differentials, both with other professions and across countries, the evidence suggests that it may difficult to raise significantly the real amount of domestic R&D in the short run because the supply of researchers is relatively inelastic. Des idées au développement : Les déterminants de la R&D et du dépôt de brevets Ce papier examine au moyen de régressions de panel les effets des instruments de politique d’innovation et des conditions cadres sur l’intensité de recherche et développement (R&D) du secteur des entreprises et les dépôts de brevets pour un échantillon de 20 pays de l’OCDE durant la période 1982- 2001. Les deux groupes de facteurs paraissent être importants ; les principaux déterminants du degré d’innovation semblent être la disponibilité de scientifiques et ingénieurs, la recherche conduite dans le secteur public (y compris les universités), les liens entre les entreprises et le secteur académique, la concurrence dans les marchés de produits, le degré de développement du secteur financier et l’accès aux innovations réalisées à l’étranger. Le soutien financier direct aux activités de R&D des entreprises a généralement un effet positif mais modeste, bien que celui-ci puisse être plus important pour des entreprises en manque de liquidités. Les droits de propriété intellectuelle ont surtout un effet positif sur les dépôts de brevets mais peu d’impact sur les dépenses en R&D des entreprises. Finalement, le papier examine le marché du travail pour les chercheurs par le biais d’équations simultanées d’emploi et de salaires. Bien que l’offre de scientifiques et d’ingénieurs réponde à terme aux différentiels de salaires, à la fois entre professions et entre pays, les données suggèrent qu’il peut être difficile d’augmenter sensiblement la quantité réelle de R&D domestique à court terme, car l’offre de chercheurs est relativement inélastique.

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Paper provided by OECD Publishing in its series OECD Economics Department Working Papers with number 457.

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Date of creation: 02 Dec 2005
Date of revision:
Handle: RePEc:oec:ecoaaa:457-en
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