Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 2015 erstellt
Beschreibung:
One important indicator of national economic strength, in addition to real GDP, is its innovative capacity. Sustained investment in research and development (R&D) is essential for the occurrence of innovation in an economy. The stock of real R&D capital, defined as the cumulative past real expenditure on R&D, less depreciation of ten percent per year, is a useful summary measure of the current potential capacity of innovation. It is compared across the Group-of-Seven (G-7) Countries, the four East Asian Newly Industrialized Economies (EANIEs) and China on both an aggregate and a per capita basis. Indicators of success in innovation, such as the number of patent applications submitted and the number of patents granted, both domestically and abroad, each year, are also compared across the same set of economies. The real R&D capital stock can be shown to have a direct and positive causal relationship to the number of patents granted -- the higher the level of the real R&D capital stock of an economy, the higher is the number of domestic and U.S. patents granted to it. Among R&D expenditures, different categories may be distinguished: basic research, applied research and development. The share of basic research in total R&D expenditures is also compared across the same set of economies, as “break-through” discoveries and innovations can only consistently occur in an economy with a strong foundation of basic research