EconPapers    
Economics at your fingertips  
 

Measuring the social return to R&D

Charles Jones () and John Williams ()

No 1997-12, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (US)

Abstract: A large, empirical literature reports estimates of the rate of return to R&D ranging from 30 percent to over 100 percent, supporting the notion that there is too little private investment in research. This conclusion is challenged by the new growth theory. We derive analytically the relationship between the social rate of return to R&D and the coefficient estimates of the empirical literature. We show that these estimates represent a lower bound on the true social rate of return. Using a conservative estimate of the rate of return to R&D of about 30 percent, optimal R&D investment is at least four times larger than actual investment.

Keywords: Research; and; development (search for similar items in EconPapers)
Date: 1997
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7) Track citations by RSS feed

Downloads: (external link)
http://www.federalreserve.gov/pubs/feds/1997/199712/199712abs.html (text/html)
http://www.federalreserve.gov/pubs/feds/1997/199712/199712pap.pdf (application/pdf)

Related works:
Journal Article: Measuring the Social Return to R&D (1998) Downloads
Working Paper: Measuring the Social Return to R&D Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfe:1997-12

Ordering information: This working paper can be ordered from
http://www.federalre ... /feds/fedsorder.html

Access Statistics for this paper

More papers in Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (US) Contact information at EDIRC.
Bibliographic data for series maintained by Ryan Wolfslayer ().

 
Page updated 2019-10-19
Handle: RePEc:fip:fedgfe:1997-12