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Mission-oriented R&D and growth of Japan 1988–2016: a comparison with private and public R&D

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  • Thomas H. W. Ziesemer

Abstract

We analyze the dynamic interaction of Japan’s total factor productivity (TFP), GDP, stocks of domestic and foreign private and public as well as mission-oriented R&D, called GBARD in OECD statistics, in a vector-error-correction model (VECM) for Japan with stock data for the period 1987–2016. Permanent policy changes show the following main results: (i) GBARD as well as private and public R&D each encourage growth rates of the other R&D stocks and of TFP and GDP, and (ii) all have high internal rates of return; (iii) Japan’s R&D policies affect and are affected by foreign R&D; in particular, Japan’s public R&D has a positive impact on European private R&D, whereas other OECD countries’ R&D has a negative one. Japan’s R&D policies should be supported by education policies enhancing especially the number of PhDs and IT personnel.

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  • Thomas H. W. Ziesemer, 2024. "Mission-oriented R&D and growth of Japan 1988–2016: a comparison with private and public R&D," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 33(2), pages 218-247, February.
    • Handle: RePEc:taf:ecinnt:v:33:y:2024:i:2:p:218-247
    DOI: 10.1080/10438599.2022.2164493
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    1. Thomas H. W. Ziesemer, 2024. "Public R&D and Growth: A dynamic Panel Vector-Error-Correction Model Analysis for 14 OECD Countries," Economies, MDPI, vol. 12(8), pages 1-33, August.

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