Title: Science, funding and economic growth: analysis and science policy implications

Authors: Mario Coccia

Addresses: National Research Council of Italy and Max Planck Institute of Economics, Germany; CERIS-CNR, Institute for Economic Research on Firm and Growth, Collegio Carlo Alberto, via Real Collegio, No. 30, 10024 Moncalieri (Torino), Italy

Abstract: This paper analyses the relationship between economic growth and funding for research. The econometric analysis show that Gross domestic Expenditure on R&D (GERD) as percentage of Gross Domestic Product (GDP) is a important driver of economic growth (R2 adj = 71%) that is measured by GDP per capita. The optimisation shows that the level of GERD equal to 2.6 maximises the GDP per capita, moreover is important to have global maximum that GERD financed by government is lesser than 30% of total. The paper also discusses Lisbon Strategy and research policy of the USA, Japan and EU countries.

Keywords: economic growth; research funding; comparative study; research policy; optimisation; science policy; science funding; R&D; research and development; gross domestic expenditure; GDP; gross domestic product; GDP.

DOI: 10.1504/WRSTSD.2008.017810

World Review of Science, Technology and Sustainable Development, 2008 Vol.5 No.1, pp.1 - 27

Published online: 16 Apr 2008 *

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