R&D and Economic Growth.

This paper examines the association between research and development (R&D) and the growth rate of output per capita at a national level. Do countries that allocate a larger share of output to R&D grow faster than otherwise similar countries? After reviewing past literature, I examine the association between R&D and economic growth in 20 OECD countries using a multivariate regression. There is not found to be a strong association between the two. But when considering only G-7 countries, there is reported to be a positive association between industry R&D expenditures and economic growth. [ABSTRACT FROM AUTHOR]