Working Paper: CEPR ID: DP10482
Authors: Hans Gersbach; Ulrich Schetter; Maik T. Schneider
Abstract: The aim of this paper is to identify possibilities for guiding policy in the area of basic research. We provide an extended review of basic research and offer new insights on its linkages to key economic variables and economic growth. After defining what basic research is, we identify and discuss a series of emerging policy issues by asking why we should invest in basic research, who should invest how much in basic research and when, over the course of a country?s development? We finally address the question where investments in basic research should be targeted. Moreover, we explain why many pressing issues regarding basic research policy deserve to be explored further.
Keywords: basic research; economic growth; growth policy
JEL Codes: H41; O38
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Investments in basic research (O32) | Knowledge base (D83) |
| Knowledge base (D83) | Technological progress (O49) |
| Technological progress (O49) | Development of new products and processes (O32) |
| Public investment in basic research (H54) | Productivity growth (O49) |
| Basic research (C90) | Skilled graduates trained in research environments (I23) |
| Skilled graduates trained in research environments (I23) | Private innovation (O36) |
| Basic research (C90) | Public funding (H59) |