Public Support for Innovation, Intangible Investment and Productivity Growth in the UK Market Sector

29 Pages Posted: 17 Mar 2010

See all articles by Jonathan Haskel

Jonathan Haskel

Imperial College Business School

Gavin Wallis

affiliation not provided to SSRN

Date Written: March 2010

Abstract

Pressure on public finances has increased scrutiny of public support for innovation. We examine two particular issues. First, there have been many recent calls for the (relatively new) UK R&D subsidy to be extended to other "research" activities, such as software. Second, argument still rages about the efficacy of direct public spending on R&D via spending on academic research councils, universities, and government undertaken work on civil and military R&D. To evaluate these questions we use data on market sector productivity, R&D and non-R&D intangible assets, and public sector R&D spending. We look for evidence of market sector spillovers from intangible investment and from public R&D. We find (a) no evidence of spillover effects from intangible investment at the market sector level, including from R&D, (b) strong evidence of market sector spillovers from public R&D spend on research councils, and (c) no evidence of market sector spillovers from public spending on civil or defence R&D. Our findings tentatively suggest that for maximum market sector productivity impact government innovation policy should focus on direct spending on research councils.

Keywords: intangible assets, productivity, R&D, spillovers

JEL Classification: E22, O47

Suggested Citation

Haskel, Jonathan E. and Wallis, Gavin, Public Support for Innovation, Intangible Investment and Productivity Growth in the UK Market Sector (March 2010). CEPR Discussion Paper No. DP7725. Available at SSRN: https://ssrn.com/abstract=1573429

Jonathan E. Haskel (Contact Author)

Imperial College Business School ( email )

South Kensington Campus
Exhibition Road
London SW7 2AZ, SW7 2AZ
United Kingdom

Gavin Wallis

affiliation not provided to SSRN

No Address Available

Register to save articles to
your library

Register

Paper statistics

Downloads
3
Abstract Views
339
PlumX Metrics