The Relationship between R&D Expenditures, Patent Applications and Growth: A Dynamic Panel Causality Analysis for OECD Countries

Özet

Öz The causality relationship of economic growth withR&D expenditures and patent applications for the 23OECD member countries is investigated in this studyby utilising from the data belonging the period of 1996-2011. To that aim, GMM (Generalized Method of Moments)approach developed by Arellano-Bond (1991)and Wald test are used. Panel causality estimationresults put forth a two-way and positive causality betweenR&D expenditures and economic growth, and aone-way and positive causality from patent applicationsto economic growth. Hence, on the ground of theseresults, it can be argued that it is important for thecountries aiming to achieve a sustainable and high rateof growth to allocate more resources for R&D activitiesand establish an efficient patent system.