INVESTING IN INNOVATION
 

Private R&D Is Growing, But Basic Research Lags

WHY IS THIS IMPORTANT? R&D, which yields new product innovations and adds to the knowledge base of industry and the marketplace as a whole, is a key driver of economic growth-and business provides more than two-thirds of all R&D funding.

THE TREND: () After steadily rising in the 1980s, and falling in the early 1990s, business-funded R&D as a share of GDP has continued its upward climb, reaching its highest levels ever in 1997. However, as a share of GDP, company-funded basic research has declined slightly in this decade as competitive pressures and faster product cycles have led companies to shift their research more toward product development and process improvements. It is too early to tell whether this shift away from more risky exploratory research will limit innovation, but it does present cause for concern.

THE DATA:

 
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Index Home | Introduction
SECTION I | SECTION II | SECTION III
Productivity Paradox | Knowledge Economy
Nine Myths | Data Sources | Endnotes | The Authors
 
 
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