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

Nick Davis ()

No 06/8, Occasional Papers from Ministry of Economic Development, New Zealand

Abstract: 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.

Keywords: innovation; research & development; economic growth (search for similar items in EconPapers)
JEL-codes: O31 (search for similar items in EconPapers)
Date: 2006-05
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Persistent link: http://EconPapers.repec.org/RePEc:ris:nzmedo:2006_008

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