The Impact of Research and Development on Economic Growth and Productivity in the U.S. States

Abstract

Research and development (R&D) has a large effect on both state output and total factor productivity in the long run. Our estimates for the private sector of the U.S. states from 1963 to 2007 show that the R&D elasticity averages 0.056-0.143. The implied returns to state Gross Domestic Product (GDP) from R&D spending are 82-211%. There are also positive R&D spillovers, with 70-80% of the total returns accruing to other states. We also find that states with more human capital have higher own-and other-R&D elasticities, and those in lowest tier of economic development have the least own-state R&D elasticity but the highest other-R&D elasticity. In addition, we find that the positive effect of R&D spillovers across states is larger when we consider R&D spillovers across states based on economic similarity of R&D across sectors.

The Impacts of Research and Development Expenses on Export and Economic Growth

“…They reached a conclusion that R&D expenditures play a very significant role in order to increase economic growth. Similarly, Bozkurt (2015) and Blanco et. al.…”

Economic Impact of McNenny State Fish Hatchery, Spearfish, South Dakota, USA

“…Lastly, this study did not include the long-term economic impacts of hatchery research and innovation. Although somewhat difficult to quantify [29] [30] [31], the considerable and consistent year-to-year research output at McNenny likely produces substantial long-term economic benefits both within the local economy and well-beyond the borders of South Dakota [32] [33] [34].…”

Scaling up innovation: does research and development have a role to play in economic growth? A case of Hungary

“…Blanco et al (2016) studied the impact of research and development investment on economic growth in the US using data ranging between 1963 and 2007. They found out that research and development positively and significantly influenced on both output and productivity across the USA.…”

“…There is a consensus with regard to the influence of research and development on economic growth in the empirical literature (Yu, 2007;Goschin, 2014;Kwon-Ndung et al, 2014;Blanco et al, 2016). The only difference is that some researchers found out that certain conditions must not only be available but they must have reached a certain minimum level of development for a country to economically benefit from research and development expenditure (Birdsall and Rhee, 1993).…”