What Determines Industrial R&D Expenditure in the UK?

22 Pages Posted: 23 Dec 2007

See all articles by Bettina Becker

Bettina Becker

Loughborough University - Department of Economics

Nigel Pain

Organization for Economic Co-Operation and Development (OECD)

Abstract

In this paper we identify some of the factors behind the comparatively poor R&D performance of the UK in the 1990s, when R&D intensity in the business sector declined consistently. We estimate an econometric model of R&D using a panel of UK manufacturing industries. Our results highlight the importance of industry characteristics such as sales and profitability, product market competition, macroeconomic factors such as interest and exchange rates, and the composition of R&D expenditure and funding. A rise in the share of government-funded R&D or the share of foreign R&D is found to have a positive impact on aggregate R&D expenditure.

Suggested Citation

Becker, Bettina and Pain, Nigel, What Determines Industrial R&D Expenditure in the UK?. Manchester School, Vol. 76, Issue 1, pp. 66-87, January 2008, Available at SSRN: https://ssrn.com/abstract=1078168 or http://dx.doi.org/10.1111/j.1467-9957.2007.01050.x

Bettina Becker (Contact Author)

Loughborough University - Department of Economics ( email )

Ashby Road
Nottingham NG1 4BU
Great Britain
+44 (0)1509 222719 (Phone)

Nigel Pain

Organization for Economic Co-Operation and Development (OECD) ( email )

2 rue Andre Pascal
Paris Cedex 16, 75775
France

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