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An analysis of the micro- and macro-economic determinants of firm R&D intensity in the South African business sector.
- Source :
- African Journal of Science, Technology, Innovation & Development; Jun2024, Vol. 16 Issue 3, p297-308, 12p
- Publication Year :
- 2024
-
Abstract
- Research and experimental development (R&D) is an important driver of economic growth and productivity. Gross expenditure on domestic R&D (GERD) is a country's total expenditure on R&D performed by all sectors of the economy. South Africa's GERD as a percentage of its GDP (GERD/GDP) remains below government targets and has stagnated over the past decade, largely due to declining business sector R&D. This paper aims to identify the drivers of firm-level R&D intensity, defined as the firm's R&D expenditure as a percentage of turnover. It is the first South African study to examine both micro- and macro-economic drivers of firm R&D, with a paucity of literature on this topic for middle-income countries. Using the South African National R&D Survey data, the study utilized the Generalized Method of Moments (GMM) model and found that public financial support for firms, smaller firm-size, firm-level collaboration, political stability, foreign direct investment, and public R&D investment are positively associated with firm R&D intensity. The results highlight the importance of public financial support for smaller firms and investments in higher education and research institutions in promoting firm-level R&D, thereby providing useful policy insights for boosting business sector and economy-wide R&D expenditure and reaching national GERD/GDP targets. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 20421338
- Volume :
- 16
- Issue :
- 3
- Database :
- Complementary Index
- Journal :
- African Journal of Science, Technology, Innovation & Development
- Publication Type :
- Academic Journal
- Accession number :
- 177455610
- Full Text :
- https://doi.org/10.1080/20421338.2023.2296653