The Impact of Research and Development on Economic Growth and Productivity in the US StatesSchool of Public Policy Working Papers
AbstractWe estimate the impact of R&D on TFP and output in the private sector at the state level in the US from 1963 to 2007. R&D has a large effect on both output and TFP at the state level in the long run. The R&D elasticity in a state averages 0.056 to 0.143, implying returns to state GDP from R&D spending of 83% to 213%. There are also positive R&D spillovers, with 77% of the total returns accruing to other states. The R&D elasticities are either stable or increase slightly after 1993. The effects of R&D are dependent on the levels of human capital and development. States with more human capital have higher own- and other-R&D elasticities. States in the lowest tier of economic development have the least own-state R&D elasticity but the highest other-R&D elasticity. We discuss implications for policy in the US and in developing countries.
Citation InformationLuisa Blanco, James Prieger and Ji Gu. "The Impact of Research and Development on Economic Growth and Productivity in the US States" (2013)
Available at: http://works.bepress.com/luisa_blanco/13/