Interplays among R&D spending, patent and income growth: new empirical evidence from the panel of countries and groups

Ramesh Chandra Das ()
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Ramesh Chandra Das: Vidyasagar University

Journal of Innovation and Entrepreneurship, 2020, vol. 9, issue 1, 1-22

Abstract: Abstract Industrial houses and governments of different countries and groups spend a sizeable amount of their earnings upon research and development activities to create new products and obtain patents for them. The short-run motive is to get patents, and the long-run motive is to influence income growth of the countries. The empirical findings so far are skeptical on the effects of research and development (R&D) spending. The present study further investigates the long-run associations and short-run dynamics among R&D spending, number of patents and per capita income growth in the panel of countries and groups for the period 1996–2017. Using VAR model for the panel data, the study observes that R&D spending, number of patents and per capita income growth have no long-run equilibrium relations but in the short-run, income growth and number of patents make a cause to R&D spending. However, there are weak causation from patents and R&D spending to income growth rates. The study thus recommends for controlling unfair competition on spending on R&D head and getting patents since it increases the magnitudes of social cost.

Keywords: R&D share; Patents; Per capita income growth; VAR; Panel unit roots; Panel cointegration; Panel causality; O3; O4; E24; F2; O5; C32; C510 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (5)

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DOI: 10.1186/s13731-020-00130-8

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