Although Congress made permanent the research and development tax credit in 2015, the federal government and states still can do more—a 10 percent increase in R&D tax credit generosity permanently increases labor productivity by 0.4 percent per year, writes John Wu in Innovation Files.

Fact of the Week: Increasing R&D Tax Credit by 10 Percent Could Boost Labor Productivity Growth by 0.4 Percent Per Year

Government R&D accounted for about one-quarter, on average, of a business sector’s TFP growth since World War II.

Fact of the Week: Government R&D Appropriations Account for About One-Quarter of Business-Sector TFP Growth Since World War II

Among Irish firms, a 10 percent increase in R&D investment per employee raised productivity by 12 percent, writes John Wu in Innovation Files.

Fact of the Week: For Every 10 Percent Increase in R&D Investment per Employee, Irish Firm Productivity Increases by 12 Percent

A new study examines the number of researchers in the public and private sectors between 1981 and 2017 across 20 OECD countries, finding that a doubling of private researchers increases productivity growth by 4.3 to 7.2 percent, while doubling public researchers increases productivity growth by 6.1 to 20.6 percent.

Fact of the Week: Doubling the Number of Public Sector Researchers Can Increase Productivity Growth By Up to 21 Percent

According to the BEA’s R&D Satellite Account, R&D value added has increased in real terms from 2013 to 2023 by 63 percent.

Fact of the Week: US R&D Value Added Has Increased by 63 Percent from 2013 to 2023

Businesses in the European Union lag U.S. businesses not just in the amount they invest in R&D, but also in their capabilities to transform these investments into productivity gains, writes John Wu in Innovation Files.

Fact of the Week: U.S. High-Tech Firms Gain Two-And-A-Half Times More Productivity Than European High-Tech Firms From The Same Level Of R&D Investment

A working paper indicates that the rate of return on R&D is between 150 to 300 percent, implying that there has been historical underinvestment in R&D for nondefense use.

Fact of the Week: Public Investments in Nondefense R&D Have Rates of Return Between 150 to 300 Percent

In the EU, increasing R&D investment by one percent creates 30 percent more employment in high-tech firms than medium-tech firms, writes John Wu in Innovation Files.

Fact of the Week: In the EU, Increasing R&D Investment Creates 30 Percent More Employment in High-Tech Firms than Medium-Tech Firms

Between 2022 and 2023, R&D investment in Organization for Economic Cooperation and Development (OECD) nations grew by 2.4 percent, a slowdown from the 3.6 percent growth the previous year.

Fact of the Week: R&D Supports Increased Productivity of Turkish Firms By 10 Percent

Related

Fact of the Week: Increasing R&D Tax Credit by 10 Percent Could Boost Labor Productivity Growth by 0.4 Percent Per Year

Fact of the Week: Government R&D Appropriations Account for About One-Quarter of Business-Sector TFP Growth Since World War II

Fact of the Week: For Every 10 Percent Increase in R&D Investment per Employee, Irish Firm Productivity Increases by 12 Percent