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WHAT DETERMINES INDUSTRIAL R&D EXPENDITURE IN THE UK? *
Author(s) -
BECKER BETTINA,
PAIN NIGEL
Publication year - 2008
Publication title -
the manchester school
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.361
H-Index - 42
eISSN - 1467-9957
pISSN - 1463-6786
DOI - 10.1111/j.1467-9957.2007.01050.x
Subject(s) - economics , profitability index , competition (biology) , aggregate expenditure , monetary economics , product (mathematics) , r&d intensity , macroeconomics , finance , ecology , management , geometry , mathematics , biology
In this paper we identify some of the factors behind the comparatively poor R&D performance of the UK in the 1990s, when R&D intensity in the business sector declined consistently. We estimate an econometric model of R&D using a panel of UK manufacturing industries. Our results highlight the importance of industry characteristics such as sales and profitability, product market competition, macroeconomic factors such as interest and exchange rates, and the composition of R&D expenditure and funding. A rise in the share of government‐funded R&D or the share of foreign R&D is found to have a positive impact on aggregate R&D expenditure.