The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Research and Experimental Development (R&D) and Technological Innovation Policy

  • Henri Delanghe
  • Ugur Muldur
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_2898

Abstract

Research and experimental development (R&D), when appropriately valorised, lead to technological innovation in the form of new products and processes, which contribute to growth, competitiveness and job creation, and which produce other societal benefits. Because of market failures, the private sector, left to its own devices, invests in R&D in sectors not always fully aligned with, and at levels below, the socially desirable, and is unable to fully valorise its research output, which justifies public intervention. The latter needs to be thought through carefully based on ex ante impact assessment informed by credible ex post evaluation.

Keywords

Economic growth Economic policy Private sector R&D Technological innovation 

JEL Classifications

O3; O31; O320; O380 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • Henri Delanghe
    • 1
  • Ugur Muldur
    • 1
  1. 1.