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Business R&D, Innovation and Economic Growth: An Evidence-Based Synthesis of the Policy Issues

  • Davis, Nick

    ()

    (Martin, Jenkins and Associates Limited)

There is strong theoretical and empirical support linking business research and development, innovation and productivity growth at a national level. There is also strong evidence of spillovers from business R&D. The magnitude of these spillovers is economically significant and warrants subsidies. Evidence also suggests that a mix of discretionary and non-discretionary policies is likely to be required. New Zealand looks increasingly unusual in the OECD in terms of its sole reliance on discretionary grants for business R&D. This paper proposes implementing a well-designed non-discretionary R&D assistance scheme aimed at stimulating a sustained increase in levels of business R&D.

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File URL: http://www.med.govt.nz/about-us/publications/publications-by-topic/occasional-papers/2006/06-08-pdf/view
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Paper provided by Ministry of Economic Development, New Zealand in its series Occasional Papers with number 06/8.

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Length: 42 pages
Date of creation: May 2006
Date of revision:
Handle: RePEc:ris:nzmedo:2006_008
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  1. Bougrain, Frederic & Haudeville, Bernard, 2002. "Innovation, collaboration and SMEs internal research capacities," Research Policy, Elsevier, vol. 31(5), pages 735-747, July.
  2. Yonghong Wu & D. Popp & S. Bretschneider, 2007. "The Effects Of Innovation Policies On Business R&D: A Cross-National Empirical Study," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(4), pages 237-253.
  3. Nicholas Bloom & Rachel Griffith & John Van Reenen, 2007. "Do R&D Tax Credits Work? Evidence from a Panel of Countries 1979-1997," Discussion Papers 07-020, Stanford Institute for Economic Policy Research.
  4. Bruno Van Pottelsberghe & Dominique Guellec, 1999. "Does government support stimulates private R&D," ULB Institutional Repository 2013/6231, ULB -- Universite Libre de Bruxelles.
  5. Zvi Griliches, 1998. "Interindustry Technology Flows and Productivity Growth: A Reexamination," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 241-250 National Bureau of Economic Research, Inc.
  6. Paul M Romer, 1999. "Endogenous Technological Change," Levine's Working Paper Archive 2135, David K. Levine.
  7. Freeman, C., 1991. "Networks of innovators: A synthesis of research issues," Research Policy, Elsevier, vol. 20(5), pages 499-514, October.
  8. Arora, Ashish & Gambardella, Alfonso, 1994. "Evaluating technological information and utilizing it : Scientific knowledge, technological capability, and external linkages in biotechnology," Journal of Economic Behavior & Organization, Elsevier, vol. 24(1), pages 91-114, June.
  9. George Symeonidis, 1996. "Innovation, Firm Size and Market Structure: Schumpeterian Hypotheses and Some New Themes," OECD Economics Department Working Papers 161, OECD Publishing.
  10. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-79, June.
  11. n/a, 1998. "Can real equilibrium models account for the fluctuations of the UK business cycle?," NIESR Discussion Papers 211, National Institute of Economic and Social Research.
  12. Bruno Van Pottelsberghe & Henri Capron, 1997. "Public support to business R&D: a survey and some new quantitative evidence," ULB Institutional Repository 2013/6283, ULB -- Universite Libre de Bruxelles.
  13. Crawford, Ron & Fabling, Richard & Grimes , Arthur & Bonner, Nick, 2004. "Determinants of National R&D and Patenting: Application to a Small, Distant Country," Occasional Papers 06/2, Ministry of Economic Development, New Zealand.
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