Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(6): 915-922

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Journal of Emerging Trends in Economics and Management Sciences (JETEMS) 3(6):915-922 (ISSN:2141-7024)

The Impact of Research and Development on Socio-Economic

Development: Perspectives from Selected Developing Economies
1
AB Gyekye, 2E.K. Oseifuah and 3GNK Vukor-Quarshie
1
Department of Economics, School of Management Sciences,
University of Venda. PB X5050. Thohoyandou, 0950.
2
Department of Accounting & Auditing,
School of Management Sciences. University of Venda. PB X5050, Thohoyandou, 0950.
3
Department of Criminal and Procedural Law,
School of Law, University of Venda. PB X5050, Thohoyandou, 0950.
Corresponding Author: AB Gyekye
___________________________________________________________________________
Abstract
Research and innovation have been acknowledged as critical factors for fuelling long-term sustainable economic
growth and, concomitantly, employment creation and poverty alleviation in developed and developing
economies. However, the overwhelming majority of studies conducted on these critical factors have tended to
focus on developed economies. The purpose of this study, therefore, was to undertake an empirical investigation
of the importance of research and innovation for industrial and economic growth in the developing economies of
Sub-Saharan Africa (SSA). Specifically, the study investigated the practical utilisation of the end-product of
research to fuel innovation and growth in developing economies. The significance of this study therefore derives
from utilising empirical findings to influence policy on R&D in sub-Saharan developing countries. The study
used the Cobb-Douglas production function and panel data from a selected number of countries in SSA to assess
the impact and correlation between research and innovation and economic growth. From our regression results,
the estimated parameters of all the independent variables, with the exception of labour, are statistically
significant at the 5 percent (or better) level of significance. The coefficients (elasticities) of lagged GDP, gross
fixed capital formation (investment) and R&D are all positive and statistically significant. The size of the
coefficients implies that a 1% increase in investment, increases economic growth by about 0.236%. Similarly
our results show that a 1% increase in gross domestic expenditure on R&D will lead to an increase of about
0.326% in economic growth. The insignificance of the labour variable may be attributed to how the variable was
measured in this study. Our inability to obtain comparable measure of the quality of labour across all countries
in the study meant that the only measure of labour we could use was the total number of economically active
population (aged between 15-65 years). Given the paucity of studies on R&D impact that are devoted
exclusively to sub-Saharan Africa, our study supports the general contention among development scholars that
technological innovation and their adoption (through increased investment in R&D) remains the pathway to
increased growth among emerging economies of the sub-Saharan African region. The study therefore adds to
the debate among researchers on the impact of R&D in sub-Sahara African countries, therefore enriching the
literature on the subject. In addition governments in these countries should increase support for R&D in the
relevant institutions and industries.

_________________________________________________________________________________________
Keywords: development, developing countries, research, innovation, socio-economic growth,
sub-saharan africa.
__________________________________________________________________________________________
INTRODUCTION Utterback (1984), Fischer (1980) and Jaffe (1986).
The importance of research and innovation Sratmann (2005), one of the latest contributors in this
(technological, product, process, organisational and area, has clearly demonstrated that there is a direct
marketing innovations) in achieving economic positive correlation between R&D investment and
growth in developed countries has been firmly economic growth. To date, however, the link between
established by theoretical and empirical studies. The research and innovation and economic growth has
pioneering studies on this subject include Adam been left largely unexplored in the case of developing
Smith (1776), Schumpeter (1934), and Solow (1957). countries. The purpose of this study is to attempt to
Later studies firmly establishing a critical link supply this necessary link by examining the effect of
between innovation and growth include Pelz and research and innovation on economic growth in sub-
Andrews (1966); Allen (1970), Rothwell and Saharan Africa (SSA).
Robertson (1973), Mansfield (1977), Ebadi and
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As noted by Gaillard (2008) research and innovation method in business practices, workplace organization
comprises all fields of Science and Technology (i.e. or external relations”. The definition indicates that
natural sciences, social sciences, engineering and innovation is not limited to technological innovation
humanities). Link (1982) perceives research as but also to product, process, organisation and
primarily concerned with the search for technical or marketing innovations. Clearly, the minimum
scientific advancement and development, and the requirement for a phenomenon to qualify as
translation of such advancement into product or innovation is that the product, process, marketing
process innovation. It is important to note that the method or organizational method must be new, or
first international attempt to arrive at a standard involve a new application of the old. Innovation
definition of research and development was made by activities therefore encompass all scientific,
the Organisation for Economic Cooperation and technological, organizational, financial and
Development (OECD) at a conference in Frascati, commercial steps which lead to positive novelty and
Italy, in 1963. Following the approach advocated by change. Examples of innovation, according to the
the Frascati Manual research and development European Commission’s “Green Paper on
(R&D)1 is defined in this study as “creative work Innovation” (1995), include development of vaccines
undertaken on a systematic basis in order to increase and medicines, improved safety in transport, (ABS,
the stock of knowledge, including knowledge of man, airbags), easier communications (mobile phones,
culture and society, and the use of this stock of video-conferencing), more open access to know-how
knowledge to devise new applications”. (CD-ROM, multimedia), new marketing methods
(home banking), better working conditions, more
It is clear that research (both academic and environment-friendly techniques, more efficient
commercial) is a key and vital component of public services, etc.
economic development. However, there is
widespread recognition that although research per se The importance of research and innovation in
is a necessary condition for economic growth, it is enhancing economic growth and development has
not sufficient. Other factors such as political will, the long been recognised and emphasized in the
symbiosis between academia and industry, etc. play developed economies. Goldin (2000), in an article
key roles. In other words, for research to yield published in the Fast Company magazine, noted that
practical fruits, the results must inform and shape “the first 100 years of the United States of America’s
socio-economic policies and be adaptable to the history were about who could build the biggest, most
needs of the particular environment. This is where efficient farm. The second 100 years were about the
innovation comes in. race to build efficient factories. The third 100 years
are about ideas.” This clearly and unambiguously
Schumpeter (1934) is credited with being the first emphasises the critical and vital nexus between
economist to draw attention to the significance of research-generated knowledge and innovation.
innovation in the context of economic development.
Schumpeter cited in de Haan and de Groot (2009), Until now, very little attention has, however, been
defined innovation as “the introduction of new or paid to the link between research and innovation in
improved products, production techniques and developing economies. The purpose of this study,
organisation structures as well as the discovery of therefore, is to undertake an empirical investigation
new markets and the use of new input factors”. of the practical application and utilisation of research-
Schumpeter argued that competition through fuelled innovation for industrial and economic
innovation is the driving force of economic growth in the developing economies of Sub-Saharan
development. Indeed, prior to this period the term Africa (SSA). In other words, the study specifically
innovation was not extensively referred to, instead investigates the practical utilisation of innovation as a
the processes that are associated with innovation and positive catalyst for economic growth in developing
economic and technological change were emphasised economies.
as being important (Lorenzi et al., 1912; Veblen,
1899). THEORETICAL FRAMEWORK
Adam Smith (1776) is thought of as the first
Building on these various definitions, the Oslo economist to have pioneered a theoretical link
Manual (2005) authoritatively defines innovation as between innovation and economic growth (Agrawal,
“the implementation of a new or significantly 2002). Following Smith’s work, numerous theoretical
improved product (goods or services), or process, a studies have examined the link between innovation
new marketing method, or a new organizational and economic growth, and have developed a number
of innovation models. Tidd (2006), cited in Gerryts
and Buy (2008), classified these models into the
1
It is im port ant to not e t hat t he t er m “ resear ch and experimental following generational categories:
developm ent” is used as synonym ous to the t erm “ resear ch and
developm ent” and ar e bot h abbr eviat ed as “ R& D”

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 First and second generation models, also called to US$ 1137.9 in current purchasing power parities
linear models, emphasise need or market pull or (PPP$). Expenditure by “developed” countries

 Third generation models or coupling models.

technological push. increased over the same period by 32.3%. The
corresponding figures for “developing” and “less
Here the emphasis is placed on the interaction developed” countries are 103% and 41.7%
between different elements and feedback loops respectively.

 Fourth generation models (or parallel lines

between them.
Table 2: Gross Domestic Expenditure (GERD) as a
model). This model emphasises linkages and percentage of GDP

 Fifth generation models, also known as systems

alliances. GERD as % of GDP
2002 2007
World 1.7% 1.7%
integration and extensive networking. The Developed countries 2.2% 2.3%
emphasis here is on flexible and customised Developing countries 0.8% 1.0%
response, continuous innovation. Less developed countries 0.2% 0.2%
Source: UNESCO Institute of Statistics, 2009
The present study focuses on the linear model which
is based on the assumption that there is a strong The following characteristics are discernible from the
causal relationship between research/innovation and table 2. In relative terms, 1.7% of the world’s GDP
economic growth. In the analytic scheme of Gerryts was devoted to R&D in 2007. R&D investment
and Buys (2008), the discreet stages in the linear remains stable in developed countries increased to
innovation model are research (or science) which 2.3% of GDP in 2007, compared to 2.2% in 2002.
comes first, followed by development and finally Developing countries reported a substantial increase
production and marketing. These two authors went on in R&D investment from 0.8% in 2002 to the
to argue that research is the critical component benchmark target for developing countries of 1.0% in
because it is the starting point in the model, and it 2007.
constitutes the essential building block to innovation
which, in their scheme, is applied science. STATEMENT OF THE PROBLEM
As indicated in our introduction there is a dearth of
Global Research and Innovation Activities research on the link between research/innovation and
According to UNESCO 2007, the share of GDP economic growth in developing countries. Yet the
devoted to R&D investment in “developing” and importance of research and development (R&D), and
“less developed” countries has been insignificant innovation in achieving economic growth in
compared to developed countries. Gross domestic developed countries has been firmly established and
expenditure on R&D (GERD), expressed in confirmed by several studies. This leads inevitably to
purchasing power parity (PPP$) and R&D intensity the question: is there a link between
(i.e. percentage of GDP devoted to R&D activities) research/innovation and economic growth in
are the most commonly used indicators to monitor the developing countries? Of particular interest is the
resources devoted to R&D world-wide. The correlation between research and innovation and
following tables indicate the global level of research economic growth in Sub-Saharan Africa.
and development expenditure in developed and
“developing countries” as well as “less developed Cognate question is: What is the relationship
countries” over the period 2002 and 2007. between the composition of R&D expenditure to
innovation rate and growth in developing countries?
Table 1: R&D expenditure (GERD) by principal
regions and countries, 2002 and 2007 HYPOTHESIS
Country GERD (billion PPP $) It is hypothesised that countries with higher R&D
quantity (intensity) have higher economic growth rate
2002 2007 % change
(higher GDP) than those with lower R&D activities.
World 788.5 1 137.9 44.3
Developed countries (DC) 653.3 864.2 32.3
Developing countries (DPC 134.0 272.0 103 OBJECTIVES
Less developed countries 1.2 1.7 41.7 The main objective of this study is to analyse the
(LDC) impact of research and innovation on socio-economic
Source: UNESCO Institute of Statistics, 2009 development in developing countries in general, and
Key: GERD – Gross Domestic Expenditure on in the selected countries in sub-Saharan African
Research & Development; GDP – Gross Domestic countries, in particular.
Product; PPP – Purchasing Power Parity.

 To assess the link between research intensity

The specific objectives are:
Table 1 shows that over the period from 2002 to
2007, world expenditure on R&D increased to just
 To draw policy conclusions from the findings.
and economic growth in Sub-Saharan Africa.
under 45% in absolute terms, from US$788.5 billion

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Constraints of the Study capital are characterised by higher levels of

This investigation suffered from a number of innovation (Ruuskanen, 2004).
constraints, chief amongst which was data
availability in many SSA countries. This factor Lichtenberg (1992) examined the macroeconomic
constitutes a formidable disincentive to research in effect of R&D using national level data. Using cross-
the field of science, technology and innovation in sectional data from 98 countries Lichtenberg
Africa. estimated directly a non-linear production function
that included the rates of investment in labour,
LITERATURE REVIEW physical capital and research as regressors. The
Solow (1957) was the first to have conducted an results show that privately-funded R&D investment
empirical study between technical progress has positive significant effects on the level and
(innovation) and economic growth. This is why growth rate of productivity. Additionally, it was
Cameron (1996) in Innovation and Economic Growth found that the rate of return to private R&D
argued that “any serious study of the literature on investment is seven times larger than the return to
technical progress and growth must start with the investment in equipment and structures.
work of Solow (1957)”. Solow analysed data on total
factor productivity in the United States between 1909 In another econometric study, Coe, Helpman, and
and 1949 and concluded that technical change was Hoffmaister (2008) concluded that “there is robust
responsible for about 87.5 per cent of economic evidence that total factor productivity, domestic R&D
growth. capital and foreign R&D capital are cointegrated (i.e.
share a common trend) and that both measures of
A number of other empirical studies have estimated R&D capital are significant determinants of TFP.”
the impact of research and development and From R&D perspective, four factors were found to
innovation on productivity in advanced economies make a difference among nations: 1) the ease of
such as the USA, Japan, France and Germany doing business, 2) the quality of the tertiary education
(Griliches, 1994; Nadiri, 1993; Fagerberg, 1994; system, 3) intellectual property protection, and 4) the
Bassanini and Scarpetta, 2001; de la Fuente and historical origins of the legal system.
Ciccone, 2002). Most of these studies again confirm

 There is a positive correlation between R&D

the following: The US Bureau of Economic Analysis (BEA), and
the National Science Foundation, published

 Productivity growth is fuelled by R&D

intensity and productivity growth. preliminary calculations showing that the treatment
of R&D as investment would have raised the level of

 R&D has a positive impact on total factor

investment GDP by 2.6% and real GDP growth by an average
0.1 percentage points per year in the period since
1959. In their calculations this increased to an
 Social rates of return on R&D investment
productivity
average 0.8 percentage points per year in 1995-2002,
‘remain significantly above private rates’ of adding up to a contribution of about 6.5% to real
GDP growth in this period (Okubo et al, 2006).
 There is a positive correlation between
return.

investment in R&D and the quality of the The positive relationship between a country’s R&D
and productivity growth has been confirmed by
 There is a positive correlation between R&D
human capital
studies using international panel data, such as
intensity and the inflow of foreign direct Frantzen (2000) and Griffith, Redding and Reenen
investment (FDI). (2002). These studies provide strong evidence that
R&D spillovers from industrialized countries to
It should be pointed out that several research findings developing countries have positive effects on the TFP
suggest that certain specific socioeconomic growth of the latter (Coe, Helpman and Hoffmaister,
conditions must be met for R&D investment to 1995; Griffith, Redding and Reenen, 2002). In
actually lead to innovation. For example, there is another study Savvides and Zachariadis (2003) found
some evidence from empirical regional studies that that both domestic R&D and foreign direct
‘innovation averse’ and ‘innovation prone’ regions investment increase the domestic productivity and
have different capacities to ensure high R&D value added growth.
productivity (Bilbao-Osorio and Rodríguez-Pose,
2004; Rodríguez-Pose, 1999). There is also some Birdsall and Rhee (1993) used UNESCO data for
evidence that social capital – defined by Putnam research and development (R&D) expenditures and
(1993) as features of social organisation, such as personnel to analyse the differences in R&D
civic participation, norms of reciprocity and trust in activities and assess the determinants of these
others – facilitates cooperation for mutual benefit and differences and the link between R&D and economic
that firms and regions with higher levels of social growth. They found that R&D activity (expenditure)
and economic growth are positively correlated only

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in countries in the OECD while there was no million population, the share of government
significant relationship in the case of developing expenditure on research in GDP, and the scientific
countries. Even for OECD countries, the study found output of each country. Their findings, based on
no evidence that R&D activity fuels growth. These panel data regressions indicate that in general, no
findings suggest that R&D activities contribute to significant positive relationship exists between R&D
productivity only when a country attains a threshold and economic growth in the countries studied.
level of economic prosperity.
Gerryts and Buy (2008) studied the link between
Ulku (2004) investigated the link between R&D and innovation in South Africa based on data
innovation, R&D and economic growth. The writer from the South African Innovation Survey of 2001.
employed various panel data techniques and relied on The findings suggest that South African enterprises
patent and R&D data for 20 OECD and 10 Non- had a relatively high level of innovation with very
OECD countries for the period 1981-97. The results low innovation costs. In addition, a cross tabulation
suggest a positive relationship between per capita analysis of the data revealed a significant positive
GDP and innovation in both OECD and non-OECD link between innovation and R&D.
countries, while the effect of R&D stock on
innovation is significant only in the OECD countries Cameron (1996) presents an overview of the
with large markets. empirical literature that investigates the link between
innovation and economic growth. The author relied
Goel and Ram (1994) used data from a cross-section on a number of different measures of innovation,
of 52 countries in the late 1970s and early 1980s to such as R&D spending, patenting, and innovation
assess the effect of research and development (R&D) counts, as well as the pervasive effect of
outlays on economic growth. The variables in the technological spillovers between firms, industries,
growth model include labour, capital and R&D and countries. Three conclusions were drawn from
expenditure. The estimated impact of R&D outlays the study: i) innovation makes a significant
on economic growth is positive and large, but its contribution to growth; ii) there are significant
statistical significance is low. spillovers between countries, firms and industries,
and to a lesser extent from government funded
Yang (2006) investigated the importance of research; and iii) the spillovers tend to be localized,
innovation efforts and the discovery of new ideas with foreign economies gaining significantly less
worldwide in promoting Taiwan’s economic growth. from domestic innovation than other domestic firms.
Using patents application as proxy of innovation, the
empirical estimates show that increase in patenting METHODOLOGY
leads to increase in economic growth for both the The Model
long-run and short-run. The findings suggest further We conducted this study on a number of Sub-Saharan
that part of the post-war economic growth of Taiwan African countries and used annual data for the ten
might plausibly be attributed to innovation, even year period, 1997 – 2007. This time period and
though factor accumulations have indeed helped the frequency was largely dictated by the availability of
rapid growth of Taiwan. data on R&D.
The basic model estimated on panel data for selected
Using country-level data Coe and Helpman (1995) developing countries is a simple Cobb-Douglas
and Engelbrecht (1997) established a relationship production function and the sample period is 2000-

GDPit  e i GDPit11 Lit1 K it 3 RDit 4 U it .

between R&D expenditures and TFP in OECD 2007.
countries plus Israel, focusing on international R&D (1)
spillovers from foreign R&D capital. Coe et al.
(1997) extended this analysis to developing countries Where
by estimating the elasticities of TFP in 77 developing GDPit = the gross domestic product for country i in
countries with respect to R&D capital stock in 22 time t.
industrialized economies. The results suggest that
R&D spillovers from the twenty-two industrial Lit = Labour force for country i in time t.
countries over the study period, 1971-1990, are K it = Investment measured by gross fixed
substantial.
capital formation.
Samini and Alerrasoul (2009) used panel data to RDit = R&D expenditure for country i in time t.
estimate the impact of R&D on economic growth in U it = error term.
30 developing countries over the period 2000-2006,
the period for which data was available. They used Equation (1) can be rewritten in logarithmic (linear)
form as follows:
Ln(GDPit )   i  1 Ln(GDPit1 )   2 Ln( Lit )   3 Ln( K it )   4 Ln( RDit )  u it
three proxies for R&D: number of researchers in one
(2)
(2)
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If the estimators of the two models are (statistically)

Where the same, then it is safe to use the random effect

 i's
results. Otherwise if the estimators are (statistically)
= Social output elasticities with respect to different, one uses the fixed effect results. When
applied to the analysis of the panel data for this study,
lagged GDP, Labour, Investment and Research and
the Hausman test showed a statistically significant

 i'
Innovation, respectively.
difference between fixed effect and random effect
= an index of efficiency or total factor models. Accordingly, we report in Table 1 below, the
productivity regression results using the fixed effect model.
U it = error term
Table 1: Fixed Effect Regression Results
Dependent variable: Ln (GDP)
Data Observations (countries): 5
The model was estimated using the Cobb-Douglas Period: 1997-2007
production function and panel data for a selected Total panel observations: 55
Variable Coefficient Std error t-statistic
number of Sub-Saharan African countries for the ten Prob.
year period, 1997 - 2007. The main sources of data C 0.022 0.0103 2.14
are the World Development Indicators (WDI) of the 0.0385
World Bank, UNESCO Institute of Statistics, and Ln(GDPt-1) 0.148 0.0382 3.87
0.0004
IMF’s International Financial Statistics (IFS). Ln(Labour) 0.126 0.3818 0.33
0.5789
ANALYSIS AND INTERPRETATION Ln(K) 0.236 0.0918 2.57
The study utilised panel data regression to estimate 0.0295
Ln(R&D) 0.326 0.0600 5.43
the parameters (output elasticities) of the model. 0.0000
Panel data regression technique is the most R- Squared: 0.904
appropriate technique for an investigation of this Adjusted R- Squared: 0.901
nature as it enables researchers to use data with cross- Durbin Watson Statistic: 2,128
section and time series dimensions to conduct a study Source: Model estimates obtained from panel data
that cannot be carried out with cross-section or time compiled by authors and derived using the STATA
series data separately. statistical software.
Generally, a regression model for panel data analysis

Yit    1 X 1it   2 X 2it  ...  U it ,

is stated as follows: DISCUSSION
The results of our regression analysis reveal an

U it    vit
important dimension in the empirical literature on the
role of research and innovation in economic growth.
Where E (U i )  0 and has a constant variance.
On the one hand, our results are consistent with many
previous studies on the impact of R&D on developed
µ includes fixed effects that show differences among countries which have indicated strong positive

vit  IND(0,  2 )
countries’ characteristics association between R&D and growth rates (Barro,
1991; Birdsall and Rhee, 1993; Coe and Helpman,
1995; Ulku, 2004).
To obtain the estimates of the effects of the On the other hand, the results are inconsistent with
independent variables R&D, Labour, Investment and many a number of studies on developing countries
lagged GDP, Fixed effect (fe) model was first which have shown generally insignificant and, in
estimated. The random effect (re) model was also some cases, negative impact of R&D on economic
estimated. In panel data regression, a choice is growth in developing economies (Samini &
usually made between fixed effect and random effect Alerasoul, 2009, Birdsall &Rhee, 1993, Goel & Ram,
models. Statistically, fixed effect regression always 1994).
gives consistent results but they may not be the most
efficient or accurate (results).On the other hand, From our regression results, the estimated parameters
random effect regression yields more efficient of all the independent variables, with the exception of
estimators. Therefore, it is advisable to use random labour, are statistically significant at the 5 percent (or
effect model if it is statistically justifiable to do so. better) level of significance. The coefficients
The Hausman test is the usual test employed to make (elasticities) of lagged GDP, gross fixed capital
a choice between a more efficient (random effect) formation (investment) and R&D are all positive and
model and a less efficient but consistent (fixed effect) significant. The size of the coefficients implies that a
model. The Hausman test, tests the hypothesis that 1% increase in investment, increases economic
the coefficients estimated by the efficient random growth by about 0.236%. Similarly our results show
effect estimators are the same as the ones estimated that a 1% increase in gross domestic expenditure on
by the consistent fixed effect estimators.

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R&D leads to an increase of about 0.326% in Collaborative Economics, 2008. The innovation
economic growth. driven economic development model: A practical
guide for the regional innovation broker.
The insignificance of the labour variable may be
attributed to how the variable was measured in this European Commission, 1995. Green paper on
study. Our inability to obtain comparable measure of innovation, December, 1995.
the quality of labour across all countries in the study
meant that the only measure of labour we could use Frascati Manual 2002. Proposed standard practice for
was the total number of economically active surveys on research and experimental development
population (aged between 15-65 years) (OECD. 2002).

CONCLUSION Gaillard J, 2008. The Characteristics of R&D in

Using World Bank (World Development Indicators), Developing Countries. Measuring R&D in
UNESCO, and International Financial Statistics (IFS) Developing Countries, the UNESCO Institute for
data, this paper has assessed empirically, the link Statistics (UIS), Final paper, March 2008.
between R&D (and other variables) and economic
growth for 5 Sub-Saharan African countries for the Gerryts B A, and Buys A J, 2008. R&D as a source
period 1997 to 2007. Within the group of Sub- of innovation in South Africa, Portland International
Saharan African countries, R&D expenditure and Centre for Management of Engineering and
economic growth are found to be significantly Technology (PICMET) conference 2008: Technology
correlated. Given the paucity of studies on R&D Management for Sustainable Economies, Cape Town,
impact that are devoted exclusively to sub-Saharan South Africa, 27-31 July: 337-343.
Africa, our study supports the general contention
among development scholars that technological Goldin S, 2000. Unleash your Ideavirus. Fast
innovation and adoption (through increased Company Magazine. Issue 37, July 2000.
investment in R&D) remains the pathway to (http://www.fastcompany.com/magazine/37/ideavirus
increased growth among the emerging economies of 2.html?page=0%2C0)
the sub-Saharan African region. We therefore
advocate that governments in these countries should Griliches Z, 1979. Issues in Assessing the
increase support for R&D in the relevant institutions Contribution of Research and Development to
and industries Productivity Growth. The Bell Journal of Economics,
Vol. 10, No. 1 (Spring, 1979), pp. 92-116. The
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