R&D and Development

39 Pages Posted: 7 Jul 2003

See all articles by Daniel Lederman

Daniel Lederman

World Bank - Latin America and Caribbean Region

William F. Maloney

World Bank - Poverty and Economic Management Unit; IZA Institute of Labor Economics; World Bank - Development Research Group (DECRG)

Date Written: April 2003

Abstract

This paper employs a new global panel data set on innovation related variables to examine patterns of R&D investment across the development process. We find that R&D effort measured as a share of GDP rises with development at an increasing rate, but that several countries have experienced extraordinary "take offs" relative to the median tendency. Our estimates of the rates of return to R&D suggest that these efforts are justified. Moreover, the returns to R&D appear higher for developing countries. Differences in financial depth, protection of intellectual property rights, government capacity to mobilize resources, and the quality of research institutions appear as the main reasons that developing countries invest less despite higher returns. Finally, natural resource abundant countries show higher returns to R&D although lower overall investment.

Keywords: R&D, Innovation, Patents, Technological Change

JEL Classification: O1, O3, O33, O57

Suggested Citation

Lederman, Daniel and Maloney, William F., R&D and Development (April 2003). World Bank Policy Research Working Paper No. 3024. Available at SSRN: https://ssrn.com/abstract=402480

Daniel Lederman

World Bank - Latin America and Caribbean Region ( email )

1818 H Street NW
Washington, DC 20433
United States

HOME PAGE: http://sites.google.com/site/danielledermanworldbank/

William F. Maloney (Contact Author)

World Bank - Poverty and Economic Management Unit ( email )

1818 H Street NW
Washington, DC 20433
United States
202-473-6340 (Phone)
202-522-0054 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

World Bank - Development Research Group (DECRG)

1818 H. Street, N.W.
MSN3-311
Washington, DC 20433
United States

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