NPL economists, Dr Mike King and Eugenio Renedo release a new paper discussing the 2.4% GDP target. Highlighting that R&D investment is an important driver of the technological change which enables productivity growth, the paper looks at the current model of investment in R&D and what is required to further increase productivity. It is a timely and compelling thought piece during a moment when productivity benefits are vital to industry and economic recovery.
The paper highlights significant new evidence that the productivity of R&D needs to be improved and points to one study that suggest the rate at which R&D spending, and its conversion into better products, has declined over time. In order to achieve improved R&D outcomes and to ensure reproducibility, private organisations require good access to research tools, techniques, and standards. These infrastructure technologies (infra-technologies) need further investment to ensure they are accessible and relevant…Read more