 Public R&D investment in economic crisesMaikel Pellens, Bettina Peters (), Martin Hud, Christian Rammer and Georg Licht Research Policy, 2024, vol. 53, issue 10 Abstract: We study the cyclicality of public R&D in 29 OECD countries over the period 1995 to 2019. Public R&D is procyclical on average, and mostly driven by adjustments in public R&D aimed at the government and higher education sectors. However, public R&D reacts asymmetrically over different phases of the business cycle, becoming acyclical during recessions. This acyclicality masks an important heterogeneity across countries: the world’s leading innovators behave countercyclically during recessions and even increase public R&D. These results suggest that countries behind the innovation frontier could still strengthen their resilience to economic crises by adopting countercyclical public R&D strategies, thereby also safeguarding long-term growth through innovation. Keywords: R&D; Public policy; Business cycle (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:53:y:2024:i:10:s0048733324001331 DOI: 10.1016/j.respol.2024.105084 Access Statistics for this article Research Policy is currently edited by M. Bell, B. Martin, W.E. Steinmueller, A. Arora, M. Callon, M. Kenney, S. Kuhlmann, Keun Lee and F. Murray More articles in Research Policy from Elsevier |
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