1. Review Paper: Can Increasing Expenditure on Research and Developme Nt Really Be Justified?
- Author
-
Bryson, R A
- Subjects
TECHNOLOGICAL innovations ,MACHINERY ,ECONOMIC development ,NEOCLASSICAL school of economics - Abstract
Economists since Adam Smith have recognized the contribution of innovation to profitability and growth. The relationship between corporate research and development and subsequent sales growth, both across and within industries, has been examined by many authors. Results have been varied showing at best no more than the suggestion of a causal relationship between research and development input and growth. These results are reviewed together with the various theories which have been developed in an attempt to explain the connection between technical innovation and growth. Starting with an exami nation of various national economies, the rate of commercial research and development expenditure has been compared to the rate of national growth. A number of industries in the United Kingdom, Germany, Japan and the United States of America were also examined, taking the automotive industry as a particular case. In addition to using published data a survey of smaller vehicle manu-facturers in the United Kingdom was conducted. Although positive correlation was found at an international and industry level, no association between research and development expenditure and sales growth was found at a company or project level in the United Kingdom. [ABSTRACT FROM AUTHOR]
- Published
- 1997
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