The productivity effect of public R&D in the Netherlands
| Autor: | Luc Soete, Bart Verspagen, Thomas Ziesemer |
|---|---|
| Přispěvatelé: | Macro, International & Labour Economics, RS: GSBE TIID, Maastricht Graduate School of Governance, RS: UNU-MERIT Theme 1, Mt Economic Research Inst on Innov/Techn, RS: GSBE - MACIMIDE, RS: GSBE other - not theme-related research, RS: GSBE Theme Sustainable Development, RS: GSBE Theme Creativity, Innovation & Entrepreneurship, RS: GSBE MGSoG, Vrije Universiteit Brussel |
| Rok vydání: | 2019 |
| Předmět: |
h40 - Publicly Provided Goods: General
h41 - Public Goods return on investment R&D policy vector-error-correction model Research and Development International trade Agricultural economics Management of Technology and Innovation Return on investment 0502 economics and business Technological Change: Government Policy Public R&D 050207 economics Innovation R&D investment Productivity Total factor productivity Technological Change Intellectual Property Rights: General o38 - Technological Change: Government Policy Rate of return business.industry 05 social sciences Internal rate of return o32 - Management of Technological Innovation and R&D Shock (economics) Foreign policy rate of return to public R&D investment Business Publicly Provided Goods: General public R&D investment General Economics Econometrics and Finance rate of return 050203 business & management |
| Zdroj: | Economics of Innovation and New Technology, 29(1), 31-47. Routledge/Taylor & Francis Group Maastricht University |
| ISSN: | 1476-8364 1043-8599 |
| Popis: | Using a vector-error-correction model (VECM) with endogenous stocks for total factor productivity (TFP), domestic and foreign public and private Research and Development (R&D) as well as the GDP from which current resources are taken, we find that for the Netherlands for the period 1968-2014, extra investment in public R&D has a clear positive effect on total factor productivity growth. Taking into account the costs of these extra investments, we find that the rate of return to such a policy is positive and generally high. Including private R&D in the policy from the beginning is better than increasing public R&D alone and private R&D only following. Transitory and permanent shocks to only domestic public R&D in 1971 show positive effects on private domestic and foreign private and public R&D, total factor productivity and GDP. Under a permanent shock to the growth rate of domestic public R&D by 0.005 (an additional half percentage point on the baseline growth rate), TFP is 27.5% higher than baseline after 70 years, and the GDP is 61% higher because a higher TFP also attracts international capital one-to-one with GDP. Foreign private R&D reacts much more positively then foreign public R&D. Private R&D capital increases by up to 5.5% compared to baseline and returns to baseline in the long run. The internal rate of return is 131 percent obtained already in 1988. If domestic and foreign public R&D are increased by the same permanent shock of 0.005, there are positive effects for thirty five years in domestic private R&D but permanently so for all other variables; TFP would have been higher by 0.56% and GDP by 9.4%, much less than under the first strategy without the symmetric and simultaneous foreign policy. The rate of return is 4-6 percent for horizons 2014, 2024, and 2040 because of higher gains in later periods. If domestic and foreign public and private R&D growth get a shock of 0.0025 (each an additional quarter of a percent on baseline) TFP increases by 13 percent until 2040, GDP by 28 percent and the internal rate of return is 77%. |
| Databáze: | OpenAIRE |
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