Indicators of the impact of R&D on the economy
This paper reviews the literature on the economic effects of R&D and then examines the gaps in our knowledge. While most micro-studies show that R&D raises economic growth, existing knowledge of the mechanisms by which R&D affects productivity and output is sparse, and it is unclear whether the micro-studies can be generalized to the national economy. The paper concludes by examining some possible consequences of the reduced R&D effort by the United States.