Open AccessINNOVATION EFFECT THROUGH RESEARCH AND DEVELOPMENT ON ECONOMIC GROWTH IN 35 OECD COUNTRIES
Author(s) -
Maman Ali M. Moustapha,
Yu Qian
Publication year - 2021
Publication title -
risus - revista de inovação e sustentabilidade
Language(s) - English
Resource type - Journals
ISSN - 2179-3565
DOI - 10.23925/2179-3565.2020v11i4p159-166
Subject(s) - economics , government expenditure , investment (military) , government (linguistics) , perspective (graphical) , empirical research , research development , macroeconomics , economic growth , political science , public finance , paleontology , linguistics , philosophy , test (biology) , epistemology , artificial intelligence , politics , biology , computer science , law
This paper analyzes the effect of research and development (R&D) expenditures on economic growth in the Organization of Economic Cooperation and Development (OECD) countries over the period 2000-2016. This study conducts an empirical analysis using a multiple regression model. The main findings confirm that an increase in research and development expenditure by 1% would generate an increase of real GDP growth rate to 2.83 %. The implication emerging from this study is that government and institutions need to increase investment in R&D expenditures to fulfill inclusive economic growth perspective.