Growth Effects of Research Expenditure

The paper examines productivity and growth effects of R&D activities in Austria and in the OECD countries based on macroeconomic data over the past 30 years. Results using panel data methods show that domestic research spending contributes to an increase in total factor productivity and per-capita GDP in almost all industrialised countries. In Austria, the productivity effect of all R&D capacities tends to be higher than the average of OECD countries. The impact of domestic R&D capital stock on productivity and per-capita GDP has increased over time.