Historical Pathways of National Research and Development Systems in OECD Countries

Authors

DOI:

https://doi.org/10.18800/360gestion.202409.014

Keywords:

R&D Systems, Innovation, Scientific Productivity, R&D Intensity, OECD

Abstract

Research and development (R&D) is crucial for promoting knowledge generation as well as the acquisition of new knowledge, so as to enable the development of new products, processes, or services, and improve the existing ones. In this vein, countries make decisions to increase and sustain their innovation efforts and focus on public R&D expenditures. This paper seeks to analyse the pathways of national R&D systems of OECD countries. For this purpose, we conducted a descriptive and exploratory analysis for the period of 2000-2021. We used innovative effort variables, such as R&D intensity, as well as patents as an output variable. The sample consisted of 37 OECD countries, divided into five quintiles according to productivity performance during the study period. The results highlight cases of R&D systems that made a significant leap in productivity during the study period; however, the results also identify cases where a higher R&D intensity does not translate into substantial improvements in productivity. This confirms that innovation is a complex phenomenon where there is not always a guarantee of a positive linear relationship between innovative effort and scientific/technological performance.

Downloads

Download data is not yet available.

References

ABRAMOWITZ, M. (1956). Catching up, Forging Ahead and Falling Behind. Journal of Economic History, 46(2), 385-406.

AHMAD, M. (2021). Non-linear dynamics of innovation activities over the business cycles: Empirical evidence from OECD economies. Technology in Society, 67, 101721.

BLANCO, F., DELGADO, F.J. & PRESNO, M.J. (2020) R&D expenditure in the EU: convergence or divergence? Economic Research-Ekonomska Istraživanja, 33(1), 1685-1710.

BRYNJOLFSSON, E., ROCK, D. & SYVERSON, C. (2017). Artificial Intelligence and the Modern Productivity Paradox: A Clash of Expectations and Statistics. Retrievable from: http://www.nber.org/papers/w24001

CHANDRA DAS, R. (2020). Interplays among R&D spending, patent and income growth: New empirical evidence from the panel of countries and groups. Journal of Innovation and Entrepreneurship, 9(18), 1-22.

CHENG, C.S.A., GUO, P., WENG, C. & WU, Q. (2021). Innovation and corporate tax planning: The distinct effects of patents and R&D. Contemporary Accounting Research, 21(3), 621-653.

COCCIA, M. (2009). What is the Optimal Rate of R&D Investment to Maximize Productivity Growth? Technological Forecasting and Social Change, 76(3), 433-446.

COCCIA, M. (2010). Public and Private R&D Investments as Complementary Inputs for Productivity Growth. International Journal of Technology, Policy and Management, 10(1-2), 73-91.

CRAFTS, N. & O’ROURKE, K. (2014). Twentieth Century Growth in Aghion, P. & Durlauf, S. (Eds.), Handbook of Economic Growth (Volume 2, pp. 263-346), Elsevier.

DOSI, G., LLERENA, C. & LABINI, M. (2006). The Relationships between Science, Technologies and their Industrial Exploitation: An Illustration through the Myths and Realities of the So-Called ‘European Paradox’. Research Policy, 35(10), 1450-1464.

ENDERS, W. (2008). Applied Econometric Time Series. John Wiley & Sons.

FAGERBERG, J. (1988). International Competitiveness. Economic Journal, 98(391), 355-374.

FAGERBERG, J. & SRHOLEC, M. (2017). Capabilities, Economic Development, Sustainability. Cambridge Journal of Economics, 41, 905-926.

FREEMAN, C. (1987). Technology and Economic Performance: Lessons from Japan. Pinter Publishers.

FREEMAN, C. (1994). Innovation and Growth. Chapters.

GOÑI, E. & MALONEY, W.F. (2017). Why don’t Poor Countries do R&D? Varying Rates of Factor Returns across the Development Process. European Economic Review, 94, 126-147.

GRANGER, C. W. & NEWBOLD, P. (1974). Spurious Regression in Econometrics. Journal of Econometrics, 2(2), 111-120.

GRILICHES, Z. (1986). Productivity, R&D and Basic Research at Firm Level, is There Still a Relationship. American Economic Review, 76(1), 82-99.

GUTIERREZ, C. (2018). Eficiencia de los sistemas regionales de innovación en Europa y análisis econométrico de sus determinantes. PhD dissertation. Complutense University of Madrid, Spain.

GUTIERREZ, C. & BAUMERT, T. (2018). Smith, Schumpeter y el estudio de los Sistemas de Innovación. Revista Economía y Política, 5(1), 93-111.

HAUSMAN, N. (2022). University innovation and local economic growth. Review of Economics and Statistics, 104(4), 718-735.

KASYCH, A. & VOCHOZKA, M. (2017). Conceptual provisions of development of Ukrainian national innovation system. Scientific Bulletin of Polissia. 2 (10), 16-23.

KLASSEN, K., PITTMAN, J. & REED, M. P. (2004). A cross-national comparison of R&D expenditure decisions: Tax incentives and financial constraints. Contemporary Accounting Research, 21(3), 639-680

LEE, K., LEE, J. & LEE, J. (2021). Variety of national innovation systems (NIS) and alternative pathways to growth beyond the middle-income stage: Balanced, imbalanced, catching-up, and trapped NIS, World Development, 144, 105472.

MANKIW, N., ROMER, D. & WEIL, D. (1992). A Contribution to the Empirics of Economic Growth. The Quarterly Journal of Economics, 107(2), 407-437.

MULLAN, P. (2017). Creative Destruction. Policy Press.

NAIR, M., PRADHAN, R.P. & ARVIN, M. B. (2020). Endogenous dynamics between R&D, ICT and economic growth: Empirical evidence from the OECD countries, Technology in Society, 62. https://doi.org/10.1016/j.techsoc.2020.101315.

NAVARRO, M., GIBAJA, J. J., BILBAO-OSORIO, B. & AGUADO, R. (2009). Patterns of Innovation in EU-25 Regions: A Typology and Policy Recommendations. Environment and Planning C: Government and Policy, 27(5), 815-840.

NAVARRO, J. C., BENAVENTE, J. M. & CRESPI, G. A. (2016). The New Imperative of Innovation: Policy Perspectives for Latin America and the Caribbean. Inter-American Development Bank.

NELSON, R.R. (Ed.). (1993). National Innovation Systems: A Comparative Analysis. Oxford University Press.

OECD (2021a). What Future for Science, Technology and Innovation after COVID-19? OECD Science, Technology and Industry Policy papers, Nº 107. OECD Publications.

OECD (2021b). R&D Intensity as a Policy Target. Lessons from 11 International Case Studies. Working Party on Innovation and Technology Policy Report. OECD Publications.

OSWALD, D., SIMPSON, A. & ZAROWIN, P. (2022). Capitalization vs. expensing and the behaviour of R6D expenditures. Review of Accounting Studies, 27(2022), 1199-1232.

PARK, M., LEAHEY, E. & FUNK, R. J. (2023). Papers and Patents are Becoming less Disruptive Over Time. Nature, 613(7942), 138-144.

PARRILLA, J., TRUJILLO, J. L. & BERUBE, A. (2015). Skills and Innovation Strategies to Strengthen us: Manufacturing Lessons from Germany. The Brookings Institution, 25.

PORTER, M. (1990). The Comparative Advantage of Nations. Free Press and McMillan.

PRADHAN, R. P., ARVIN, M. B., NAIR, M. & BENNETT, S. E. (2020). The dynamics among entrepreneurship, innovation, and economic growth in the Eurozone countries. Journal of Policy Modelling, 42(5), 1106-1122.

REHMAN, N. U., HYSA, E. & MAO, X. (2020). Does Public R&D Complement or Crowd-out Private R&D in Pre- and Post- Economic Crisis of 2008? Journal of Applied Economics, 23(1), 349-371.

SCHOT, J. & STEINMUELLER, W. E. (2018). Three Frames for Innovation Policy: R&D, Systems of Innovation and Transformative Change. Research Policy, 47(9), 1554-1567.

SCHUMPETER, J. A. (1939). Business Cycles: a Theoretical, Historical, and Statistical Analysis of the Capitalist Process. McGraw-Hill.

SOLOW, R. (1956). A Contribution to the Theory of Economic Growth. The Quarterly Journal of Economics, 70(1), 65-94.

UNESCO (2021). UNESCO science report: The race against time for smarter development. Schneegans, S., Straza, T. & Lewis, J. (Eds). UNESCO Publishing.

YORUK, E., RADOSEVIC, S. & FISCHER, B. (2023). Technological profiles, upgrading and the dynamics of growth: Country-level patterns and trajectories across distinct stages of development. Research Policy, 52(8), 1-21. https://doi.org/10.1016/j.respol.2023.104847

ZHOU, X., CAI, Z., TAN, K. H., ZHANG, L., DU, J., & SONG, M. (2021). Technological innovation and structural change for economic development in China as an emerging market. Technological Forecasting and Social Change, 167, 120671.

Downloads

Published

2024-11-18

How to Cite

Gutiérrez Rojas, C., & Smith-Uldall, J. (2024). Historical Pathways of National Research and Development Systems in OECD Countries. 360: Journal of Management Sciences , 9(9). https://doi.org/10.18800/360gestion.202409.014

Issue

Section

Strategic Management of ST&I