Prizes for Basic Research - Human Capital, Economic Might and the Shadow of History

33 Pages Posted: 15 Oct 2008

See all articles by Joshua Aizenman

Joshua Aizenman

National Bureau of Economic Research (NBER)

Ilan Noy

Victoria University of Wellington

Multiple version iconThere are 2 versions of this paper

Date Written: May 1, 2006

Abstract

This paper studies the impact of global factors on patterns of basic research across countries and time. We rely on the records of major scientific awards, and on data dealing with global economic and historical trends. Specifically, we investigate the degree to which scale or threshold effects account for countries share of major prizes [Nobel, Fields, Kyoto and Wolf]. We construct a stylized model, predicting that lagged relative GDP of a country relative to the GDP of all countries engaging in basic research is an important explanatory variable of country's share of prizes. Scale effects imply that the association between the GDP share of a country and its prize share tends to be logistic - above a threshold, there is a "take off" range, where the prize share increases at an accelerating rate with the relative GDP share of the country, until it reaches "maturity" stage. Our empirical analysis confirms the importance of lagged relative GDP in accounting for countries' prize shares, and the presence of "winner takes all" scale effect benefiting the leader. Using measures of casualties during the wars, we find that the only significant effect can be found for a lag of 3 decades - i.e., deaths in the war negatively impact the viability of basic research about 30 years after the fact. With more recent data, we document the growing importance of countries that are advancing towards the take off stage.

Keywords: Global economic trends, basic research, World War I and II, human capital, winner takes all

JEL Classification: F15, F21, O3, N4

Suggested Citation

Aizenman, Joshua and Noy, Ilan, Prizes for Basic Research - Human Capital, Economic Might and the Shadow of History (May 1, 2006). Available at SSRN: https://ssrn.com/abstract=1283958 or http://dx.doi.org/10.2139/ssrn.1283958

Joshua Aizenman (Contact Author)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Ilan Noy

Victoria University of Wellington ( email )

P.O. Box 600
Wellington, 6140
New Zealand

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