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New index of R&D purchasing power parities for international comparisons

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  • Takao Kiba
  • Itsuo Sakuma
  • Junichi Kikuchi

Abstract

To make more accurate international comparisons of R&D expenditure, the development of purchasing power parities applicable to R&D expenditure (R&D PPPs) is advocated. These will allow direct comparisons of the quantity of goods and services that can actually be purchased with the R&D expenditure in various countries. A trial calculation was made of R&D PPPs for six major countries. This showed that R&D PPPs against US dollars in 1992 indicates a 17% stronger yen than that of ICP's PPPs and 22% weaker than that of the exchange rate. R&D PPPs give us a truer indication of the R&D situation in the world. This will contribute much to science and technology policy-making and analysis, for instance it can be used to analyse companies' overseas R&D investments. Copyright , Beech Tree Publishing.

Suggested Citation

  • Takao Kiba & Itsuo Sakuma & Junichi Kikuchi, 1994. "New index of R&D purchasing power parities for international comparisons," Research Evaluation, Oxford University Press, vol. 4(3), pages 161-169, December.
    • Handle: RePEc:oup:rseval:v:4:y:1994:i:3:p:161-169
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    File URL: http://hdl.handle.net/10.1093/rev/4.3.161
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