PublicationForm edit

Title Public Support for Innovation, Intangible Investment and Productivity Growth in the UK Market Sector
Author Jonathan Haskel and Gavin Wallis
Year 2010
Abstract Pressure on public finances has increased scrutiny of public support for innovation. We examine two particular issues. First, there have been many recent calls for the (relatively new) UK R&D subsidy to be extended to other research activities, such as software. Second, argument still rages about the efficacy of direct public spending on R&D via spending on academic research councils, universities and government undertaken work on civil and military R&D. To evaluate these questions, we use data on market sector productivity, R&D and non-R&D intangible assets, and public sector R&D spending. We look for evidence of spillovers from intangible investment and market sector productivity benefits from public R&D. We find (a) no evidence of spillover effects from intangible investment at the market sector level, including from R&D, (b) strong evidence of market sector productivity benefits from public R&D spend on research councils, and (c) no evidence of market sector benefits from spending on civil or defence R&D. Our findings tentatively suggest that for maximum market sector productivity impact government innovation policy should focus on direct spending on research councils.
Type
Location
DownloadInfo Published version
Haskel, J and Wallis, G., (2013), "Public support for innovation, intangible investment and productivity growth in the UK market sector", Economics Letters, Volume 119, Issue 2, May 2013, Pages 195198, http://dx.doi.org/10.1016/j.econlet.2013.02.011.
Link: http://www.sciencedirect.com/science/article/pii/S0165176513000724

Public Support for Innovation, Intangible Investment and Productivity Growth in the UK Market Sector

Further coverage: RCUK: http://www.rcuk.ac.uk/news/100316.htm
and
Imperial: http://www3.imperial.ac.uk/newsandeventspggrp/imperialcollege/newssummary/news_16-3-2010-13-6-57. From the FT: http://www.ft.com/cms/s/0/9df51c98-dc3b-11df-a9a4-00144feabdc0.html#axzz1LxftM6BK, October 20 2010 13:52. David Willetts (Minister of State for Universities and Science) speech, 9 July 2010, Royal Instituition, http://www.bis.gov.uk/news/speeches/david-willetts-science-innovation-and-the-economy
Remarks Draft, please do not cite without authors permission. Comments welcome.
Topic revision: r8 - 10 May 2013, JonathanHaskel
 

  • Set DENYTOPICVIEW =
Copyright © by CeRiBA.
Ideas, requests, problems? Send feedback