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 Investment Is Slowing in OECD Countries, From 3.6 Percent to 2.4 Percent

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

Fact of the Week: US R&D Is Estimated To Have Increased to $792 Billion in 2021

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

On average, a 0.5 percent increase in research, education funding, and university spots increases long-run growth by 2.6, 4.7, and 1.3 percentage points, respectively.

Fact of the Week: Increasing Research, Education, and University Slots With a 0.5 Percent Subsidy Could Increase Long-Run Growth Between 1 and 4 Percentage Points

In the wake of economic downturns, companies are forced to cut costs, often turning to R&D activities, which have a low impact on short-term revenue. A new study has isolated one of the mechanisms through which this takes place by examining patenting in the years after different kinds of economic crises.

Fact of the Week: Industries That Depend on External Financing Suffer 9.3 Percent Deeper Drops in Their Patenting Rates Than Other Industries do After a Banking Crisis

Economists agree that because most of the benefits of R&D and its technological breakthroughs accrue to entities other than the investing firm (e.g., customers, competitors, etc.), the current level of R&D investment is well below what would be socially optimal. 

Fact of the Week: High Government Debt Leads to Significant Declines in Economic Growth for R&D Intensive Industries

Related

Fact of the Week: R&D Investment Is Slowing in OECD Countries, From 3.6 Percent to 2.4 Percent

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: US R&D Is Estimated To Have Increased to $792 Billion in 2021