The Returns to Government R&D: Evidence from U.S. Appropriations Shocks
6 months ago
- #Innovation
- #R&D
- #Productivity
- Study examines the impact of nondefense R&D appropriations on innovation and business-sector productivity.
- Findings show that increases in nondefense R&D appropriations lead to long-term improvements in innovation and productivity.
- Structural estimates indicate returns of 140 to 210 percent for government R&D capital over the postwar period.
- Government-funded R&D accounts for one-fifth of business-sector TFP growth since WWII.
- Results suggest significant underfunding of nondefense R&D.