Does the composition of public research and development (R&D) investment matter for productivity outcomes? By using a local projections method to estimate dynamic responses for macroeconomic productivity outcomes to changes in R&D composition, the authors present new evidence on this question. In particular, they find that increases to basic research spending generate the greatest returns, primarily through increases to total factor productivity.
Document Details
- Copyright: RAND Corporation
- Availability: Web-Only
- Year: 2026
- Pages: 52
- DOI:https://doi.org/10.7249/WRA4392-1
- Document Number: WR-A4392-1
Citation
Chicago Manual of Style
Sytsma, Tobias and K. MacKenzie Scott, The Composition of Federal R&D Spending and U.S. Productivity Growth. Santa Monica, CA: RAND Corporation, 2026. https://www.rand.org/pubs/working_papers/WRA4392-1.html.
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This work was supported by the Diller-von Furstenberg Family Foundation and Pershing Square Philanthropies and conducted by the RAND von Furstenberg Family Budget Model Initiative within RAND Education, Employment, and Infrastructure.
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