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Patterns of Investing into Business R&D in South Africa

Author

Listed:
  • Neo Molotja

    (Human Sciences Research Council, South Africa)

  • Saahier Parker

    (Human Sciences Research Council, South Africa)

  • Precious Mudavanhu

    (Human Sciences Research Council, South Africa)

Abstract

The paper explores the patterns of business investment in research and development (R&D) using evidence from companies in South Africa, in comparison with indicators for a number of other countries. This study covers the period 2006–2016, the studied companies were grouped by the amount of R&D expenditures (BERD), the number of reports on research performance for the first and last years of monitoring. A typical characteristic of private sector R&D activities is the uneven distribution of resources in space and time. The major financial and other assets are concentrated within few large companies from a limited number of industries, while the majority of small and medium-sized enterprises invest in R&D projects only sporadically, for a period of no more than two consequential years. Firms that perform R&D for longer periods invest in R&D incrementally and remain more persistent than enterprises performing less R&D for shorter time periods. In view of the common nature of a number of patterns, these observations suggest different approaches to policies supporting R&D performance in the business sector not only in South Africa, but also in other countries.

Suggested Citation

  • Neo Molotja & Saahier Parker & Precious Mudavanhu, 2019. "Patterns of Investing into Business R&D in South Africa," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(3), pages 51-60.
    • Handle: RePEc:hig:fsight:v:13:y:2019:i:3:p:51-60
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    R&D performance; BERD; concentration; persistence; volatility; business sector; policy; South Africa;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O39 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Other
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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