The political economy of public research, or why some governments commit to research more than others
Andrea Filippetti & Antonio Vezzani
#2020-029
The broad consensus about the benefits of public research is at odds
with the fact that investment is in general declining but with different
patterns across countries. This triggers our research question: why do
some governments invest in public research more than others? By relying
on political economy literature, we frame investment in public research
as a political choice depending on the political institutions of
countries. Based on an empirical analysis on 41 countries we find a
robust relationship between public-funded research and political
institutions. Countries with parliamentary forms of government,
proportional electoral rules and bicameralism devote larger shares of
GDP and of public expenditure to research. We also find a great role of
encompassing civic society organizations in encouraging public research.
Political economy offers a promising perspective to delve into the
patterns of public research. As for policy implications,
majoritarian-like reforms might discourage long-term policies and harm
the long-term potential for economic growth.
Keywords: public research, political economy, R&D
JEL Classification: O3, O38, P16, P48