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RISING R&D INTENSITY AND ECONOMIC GROWTH
Author(s) -
POLLAK ANDREAS
Publication year - 2014
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/ecin.12096
Subject(s) - economics , gross domestic product , per capita , competition (biology) , r&d intensity , phenomenon , monetary economics , growth model , macroeconomics , ecology , population , physics , demography , management , quantum mechanics , sociology , biology
Over the past decades, private R&D spending in the United States and other developed countries has been growing faster than gross domestic product. At the same time, the growth rates of per-capita and aggregate output have been rather stable, possibly declining slightly. This article proposes a growth model that can account for the observed phenomenon by explicitly describing competition among technological leaders and followers in individual markets in a way that is consistent with existing studies on firms' motivation to invest in R&D. The model shows the possibility that the unsustainable trend of rising R&D intensity persists for a very long time. ( JEL O3 , O4 , L1 )