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

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

A recent discussion paper finds that among the G-20 economies, a 1 percentage point increase in public R&D investments as a share of GDP corresponds to a 9.57 percent increase in economic growth, writes John Wu in Innovation Files.

Fact of the Week: Among G-20 Economies, a One Percentage Point Increase in Public R&D Investment as a Share of GDP Corresponds to a 10 Percent Increase in Economic Growth

Public support for R&D is critical to bridge the gap in incentivizing technological progress. Three Portuguese economists examined the investment impact of tax incentives for “intangible investments,” another term for non-physical investments that increase productivity, such as human capital, software, and innovation.

Fact of the Week: Portuguese R&D Tax Incentives Spurred Investments in Productivity-Boosting Assets by 0.8 to 2.4 Percent Of Firms’ Total Assets

Fact of the Week: Portuguese R&D Tax Incentives Spurred Investments in Productivity-Boosting Assets by 0.8 to 2.4 Percent Of Firms' Total Assets

U.S. society captured four-fifths of the total returns on R&D (with the private sector gaining one-fifth) in the 2010s, up from three-fourths in the 1980s, writes John Wu in Innovation Files.

Fact of the Week: The Ratio of Societal to Private Returns From Investment in R&D Increased From 3:1 in 1980 to 4:1 in 2015

In a recent working paper, economist Jacob Mascona found that the protections led to more innovation and higher yields for the affected crops—specifically, in the ten years following the introduction of the protections, affected crops saw a 119 percent relative increase in the development of novel plant varieties (translating to an additional 11 varieties developed each year) and an 11 percent increase in crop yields.

Fact of the Week: Enhanced Patent Protections Led to Increased Innovation and Productivity in the US Agricultural Sector

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

When universities invest in R&D, they can generate returns for themselves of up to 9 percent, writes John Wu in Innovation Files.

Fact of the Week: When Universities Invest In R&D, They Can Generate Returns For Themselves Of Up To 9 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: Public R&D Investment in Brazil Increased National Agricultural Productivity by 110 Percent

Related

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

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

Fact of the Week: Among G-20 Economies, a One Percentage Point Increase in Public R&D Investment as a Share of GDP Corresponds to a 10 Percent Increase in Economic Growth