R&D, Innovation, and Economic Growth: An Empirical Analysis
By Hulya Ulku. Social Science Research Network, 2004
321 citations recorded by the source corpus.
This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. This paper investigates the main postulations of the R&D based growth models that innovation is created in the R&D sectors and it enables sustainable economic growth, provided that there are constant returns to innovation in terms of R&D. The analysis employs various panel data techniques and uses patent and R&D data for 20 OECD and 10 Non-OECD countries for the period 1981–97. The results suggest a positive relationship between per capita GDP and innovation in both OECD and non-OECD countries, while the effect of R&D stock on innovation is significant only in the OECD countries with large markets. Although these results provide support for endogenous growth models, there is no evidence for constant returns to innovation in terms of R&D, implying that innovation does not lead to permanent increases in economic growth. However, these results do not necessarily suggest a rejection of R&D based growth models, given that neither patent nor R&D data capture the full range of innovation and R&D activities. JEL Classification Numbers: O30; O31; O33; O47
Subfields: Economics and Econometrics
View Paper: https://www.semanticscholar.org/paper/51406243d656c2c3ddae92fe714eabe6a593560e
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Citations in the corpus
- Determinants of total factor productivity : a literature review (2007, result): “8 Ulku (2004), in general, agrees with the results of the former study, which suggests that innovation (as proxied by patent applications) is important for GDP per capita as well as TFP.”
- Innovation, foreign direct investment (FDI), and the energy–pollution–growth nexus in OECD region: a simultaneous equation modeling approach (2020, methodology): “The new stock of knowledge facilitates the production of goods through permanent expansion in the final output (Ulku 2004).”
- A Policy Insight into the R&D-Patent Relationship (2009, unknown): “…what drives the foreign filing of an American or a European patent (see e.g. Furman et al. (2002), Bottazzi and Peri (2003), Eaton et al. (2004), Ulku (2004), Falk (2005), and Kang and Seo (2006)): the dependent variable is usually the number of second filings from one country to the EPO or the…”