scholarly journals Economic impact of public R&D: an international perspective

2021 ◽  
Author(s):  
Luc Soete ◽  
Bart Verspagen ◽  
Thomas H.W Ziesemer
Keyword(s):  
Economic Impact ◽  
Public Investment ◽  
International Perspective ◽  
Public Research ◽  
Public And Private ◽  
Vector Error Correction ◽  
Vector Error ◽  
Research Organizations ◽  
Private And Public ◽  
Positive Shock

Abstract Despite the fact that research and development (R&D) activities are carried out in most countries in public research institutes such as universities and public research organizations, there have been few studies that attempted to estimate the economic impact of such public investment in R&D. In this paper, we analyze the relations between total factor productivity (TFP) and public and private R&D as well as gross domestic product for a set of 17 Organisation for Economic Cooperation and Development (OECD) countries using a vector-error-correction model. We find that for the period 1975–2014, investment in public R&D has had a clearly positive effect on TFP growth in the majority of countries analyzed. In simulations allowing for a permanent positive shock to public R&D, we observe a strong dynamic complementarity between the public and private (domestic) stocks of R&D for several countries. In countries where this complementarity is strong, the TFP effect of extra public R&D investments is also strong. A discriminant analysis shows that in countries with high complementarity between private and public R&D, the share of foreign funding of R&D performed in the business sector combined with a high business R&D intensity tends to be low. At the same time, the share of basic R&D in business R&D combined with a higher public R&D intensity tends to be higher in countries with strong complementarity.

Complementarity in public and private intellectual property enforcement; implications for international standards

2020 ◽  
Vol 72 (3) ◽  
pp. 748-771 ◽  
Author(s):  
Michael A Klein
Keyword(s):  
Intellectual Property ◽  
Public Investment ◽  
International Standards ◽  
Investment Incentives ◽  
Public Enforcement ◽  
Public And Private ◽  
Minimum Quality Standards ◽  
Private And Public ◽  
Counterfeit Products ◽  
Ip Law

Abstract I examine the relationship between public enforcement of intellectual property (IP) rights and firm strategies to influence entry of non-deceptive counterfeit products: illegal copies of authentic goods purchased consciously by consumers. I assume that private enforcement investment determines the probability that a counterfeit entrant will be detected, while public investment determines the efficacy of the legal institutions responsible for enforcing IP law. Private and public enforcement serve distinct complementary roles, which combine to determine total IP protection in the economy. I show that differences in the investment incentives of the two entities that control enforcement lead to inefficiently low public investment in equilibrium. In this context, international efforts to impose stricter legal penalties against counterfeiters can be counterproductive: further reducing public enforcement and increasing counterfeit prevalence. In contrast, minimum quality standards can be implemented to better align incentives, encourage higher public enforcement, and reduce inefficiency.

scholarly journals Crowding-in or Crowding-out? Modelling the Relationship between Public and Private Fixed Capital Formation Using Co-integration Analysis: The Case of Pakistan 1964-2000

2002 ◽  
Vol 41 (3) ◽  
pp. 255-276 ◽  
Author(s):  
Naveed H. Naqvi
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Public Investment ◽  
Unit Roots ◽  
Private Investment ◽  
Annual Data ◽  
Public And Private ◽  
Fixed Capital Formation ◽  
Private And Public ◽  
The Relationship

This paper uses the Co-integrating VAR’s [Johansen (1988); Ericsson, et al. (1998)] to examine the relationship between economic growth, public investment, and private investment in the presence of unit roots. Exogeneity is not implicitly assumed but explicitly tested for, and evidence of co-integration and feedback between public and private investment leads to a model in the form of a parsimonious VAR. The analysis is conducted using 37 years of annual data for Pakistan. The analysis suggests that public investment has a positive impact on private investment, and that economic growth drives both private and public investment as predicted by the accelerator-based models.

scholarly journals The evolution of public and private investment in Zimbabwe

2014 ◽  
Vol 4 (2) ◽  
pp. 61-69
Author(s):  
Garikai Makuyana ◽  
NM Odhiambo
Keyword(s):  
Public Investment ◽  
Intervention Strategy ◽  
Private Investment ◽  
Economic Policies ◽  
African Countries ◽  
Public And Private ◽  
Private And Public ◽  
Market Intervention ◽  
Business Confidence ◽  
High Level

This paper aims to put the spotlight on the evolution of both public and private investment in Zimbabwe, as they responded to the economic policies implemented from 1965 through to 2011. With the adopted inward-looking policy in 1965, the massive core of infrastructural growth in public investment became a catalyst to the high level of private investment growth. The perpetuated market-intervention policy in 1980 later resulted in the growth of public investment. Despite the adoption of a market economy in the 1990s, the envisaged cut in public investment did not occur. Very few State enterprises had been privatised by the year 2000; and there was a reversal to the market-intervention strategy during the period 2000 to 2011. Notwithstanding the government’s efforts to boost both private and public investment in Zimbabwe, the country still faces a number of challenges, as do many other African countries. These challenges include, amongst others: (i) The high national debt overhang; ii) low business confidence; (iv) liquidity constraints; (v) low industrial competitiveness; and (vi) an inadequate infrastructure.

AN ANATOMY OF ECONOMIC GROWTH IN TAIWAN

2010 ◽  
Vol 02 (02) ◽  
pp. 217-231
Author(s):  
TUAN-YUEN KONG ◽  
YUN-PENG CHU ◽  
CHIN-FU HSU ◽  
NORDEN E. HUANG
Keyword(s):  
Economic Growth ◽  
Public Institutions ◽  
Knowledge Capital ◽  
Short Term ◽  
Public And Private ◽  
Factors Affecting ◽  
Vector Error Correction ◽  
Vector Error ◽  
Vec Model ◽  
Mode Decomposition

This paper revises Sedgley's model of innovation-driven endogenous growth and applies it to the case of Taiwan. The methods of empirical mode decomposition (EMD) and constrained vector error correction (VEC model or VECM) are used in the process. The EMD is used to filter out very short term fluctuations in growth, while the VECM is used to detect the various factors that affect economic growth, including human capital, public and private capital, knowledge capital and public institutions (the index of protection of property rights). It is the first attempt to include such a rich set of factors affecting economic growth at least for the studies of Taiwan.

scholarly journals Japan’s Productivity and GDP Growth: The Role of Private, Public and Foreign R&D 1967–2017

Economies ◽  
2020 ◽  
Vol 8 (4) ◽  
pp. 77
Author(s):  
THW Ziesemer
Keyword(s):  
Total Factor Productivity ◽  
Factor Productivity ◽  
Policy Changes ◽  
Vector Error Correction ◽  
Vector Error ◽  
Private And Public ◽  
Speed Up ◽  
Permanent Effect ◽  
Vector Error Correction Models

We analyze the dynamic interaction of Japan’s total factor productivity, gross domestic product (GDP) domestic and foreign private and public research and development (R&D) in vector-error-correction models (VECMs) for Japan with data from 1963–2017. Extensive testing leads to favoring a model with five cointegrating equations for the six variables. Analysis of effects of permanent policy changes shows that (i) additional public R&D encourages private R&D and total factor productivity (TFP), and has higher internal rates of return than private R&D changes and therefore could speed up Japan’s growth; (ii) public R&D changes have a statistically significant positive permanent effect on foreign private R&D stocks and a transitional effect on foreign public R&D stocks; (iii) private R&D changes have a statistically significant positive permanent effect on foreign public R&D stocks and a transitional effect on foreign private R&D stocks; (iv) after a temporary GDP change, public R&D is counter-cyclical in the short and medium run and private R&D is pro-cyclical. Empirical results are related to the parameters of a VES (variable elasticity of substitution) function for TFP production.

Who is in charge of security? Division oflabour between public and private security producers

2018 ◽  
pp. 102-129
Author(s):  
N. A. Vasilenok ◽  
A. M. Yarkin
Keyword(s):  
Literature Review ◽  
Public Investment ◽  
Russian Literature ◽  
Public Security ◽  
Economics Of Crime ◽  
Security Measures ◽  
Regional Data ◽  
Public And Private ◽  
Private And Public ◽  
Set Up

This paper presents the first in the Russian literature review of research devoted to the roles of private and public investment in security in the economics of crime. We describe theoretical and empirical papers that deal with the strength of the deterrence and diversion effects, as well as the interaction between different security measures. Special attention is given to the roles that income inequality and institutional set-up play in the formation of the profile of security measures and the resulting distribution of crime. We also present empirical results based on the Russian regional data, which reveal a significant relationship between inequality and the ratio of private to public security measures, as well as substantial differences between more and less democratic regions.

scholarly journals Examining the Relationship between Diffrent Modes of Infrastructure Financing and Economic Growth in India

2019 ◽  
Vol 8 (4) ◽  
pp. 8677-8684
Keyword(s):  
Economic Growth ◽  
Growth Rate ◽  
Forecast Error ◽  
Error Variance ◽  
Public And Private ◽  
Vector Error Correction ◽  
Dynamic Relationship ◽  
Vector Error ◽  
Forecast Error Variance ◽  
The Impact

With an aim to achieve a status of 5 trillion economy, India has to fulfil the criteria of achieving minimum 9%+ growth rate consistently for next five years. But at present, the economic indicators of India reflect a dismal picture to achieve that goal. The economic growth rate of India has gone down to almost five percent in first quarter of financial year 2019-20. Since the opening up of the Indian economy in 1991, the role of private sector in reviving the country’s growth cannot be overstated. Expanding investment in infrastructure is often projected as a weapon which can play a counter cyclical role in the phase of such economic crisis. In an attempt to analyse the impact different modes of investment in infrastructure on economic growth of India, this paper examines the trend of investments by private as well as both public and private (joint) since 1990s. Further, a time series econometric analysis is carried out for a period of twenty-eight years (1990-2018) wherein the nexus between investments (primarily in transportation and energy sector) and economic growth of India (GDP per capita) is examined. To examine the dynamic relationship between the variables, their causality, exogeneity and comparability, the Vector auto regression (VAR) model, along with the Forecast Error Variance Decomposition (FEVD) and Vector Error Correction Model (VECM) is used. The results of VAR and VECM suggests that there is significant impact of investment in infrastructure upon economic growth of India.

scholarly journals Direct and indirect effects of investment on community welfare

2019 ◽  
Vol 16 (3) ◽  
pp. 206-216 ◽  
Author(s):  
Baldric Siregar
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
Local Governments ◽  
Public Investment ◽  
Private Investment ◽  
Public And Private ◽  
The People ◽  
Private And Public ◽  
The Government ◽  
The Impact

Despite the fact that the government is the main actor of economic development, it also invites private parties to be actively involved in the economic development. The main objective of public and private investment is economic development. But the ultimate goal of investment and economic development itself is to improve the welfare of the community. This study seeks to investigate the effect of private and public investment on economic growth. Furthermore, it also investigates the impact the investment on the community welfare either directly or indirectly through economic growth by way of analyzing the data on private and public investment, economic growth, and the human development index of local governments in Indonesia for the period from 2012 to 2016. Hypotheses were tested using PLS (Partial Least Squares). The results show that both private and public investment directly influence economic growth and indirectly affect the welfare of the people through economic growth. Direct test results also show the positive effect of economic growth on community welfare.

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