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Economic policy, the new economy and the social rate of return to R&D in UK manufacturing

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  • Tony Buxton
  • Gerry Kennally

Abstract

This article focuses on the question of whether public policy changes and/or the new economy have influenced the social returns to R&D expenditure in UK manufacturing over the three decades up to the end of the millennium. The basic methodology is reasonably straightforward, to estimate a production function in which, in addition to labour and fixed capital, R&D appears separately in a form that directly enables estimates of the social return to investment in knowledge and how it has changed over time. The results suggest that neither changes in government R&D policy nor the new economy have raised social returns to R&D.

Suggested Citation

  • Tony Buxton & Gerry Kennally, 2004. "Economic policy, the new economy and the social rate of return to R&D in UK manufacturing," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 13(7), pages 655-670.
    • Handle: RePEc:taf:ecinnt:v:13:y:2004:i:7:p:655-670
    DOI: 10.1080/1043859042000205160
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