We review the econometric literature on measuring the returns to R&D.
The theoretical frameworks that have been used are outlined, followed by
an extensive discussion of measurement and econometric issues that arise
when estimating the models. We then provide a series of tables
summarizing the major results that have been obtained and conclude with
a presentation of R&D spillover returns measurement. In general, the
private returns to R&D are strongly positive and somewhat higher than
those for ordinary capital, while the social returns are even higher,
although variable and imprecisely measured in many cases.
JEL: O30, O37, C23, C81, D24
Keywords: returns to R&D, innovation, social returns, spillovers
UNU-MERIT Working Papers ISSN 1871-9872