R&D spillovers are, potentially, a major source of endogenous growth in various recent "New Growth Theory" models. This paper reviews the basic model of R&D spillovers and then focuses on the empirical evidence for their existence and magnitude. It reviews the older empirical literature with special attention to the econometric difficulties of actually coming up with convincing evidence on this topic. Taken individually,, many of the studies are flawed and subject to a variety of reservations, but the overall impression remains that R&D spillovers are both prevalent and important.

The Search for R&D Spillovers

R&D spillovers are, potentially, a major source of endogenous growth in various recent "new growth theory" models. This paper reviews the basic model of R&D spillovers and then focuses on the empirical evidence for their existence and magnitude. It surveys the older empirical literature with special attention to the economic difficulties of actually coming up with convincing evidence on this topic. Taken individually, many of the studies are flawed and subject to a variety of reservations, but the overall impression remains that R&D spillovers are both prevalent and important. Copyright 1992 by The editors of the Scandinavian Journal of Economics.

/pdf/the-search-for-r-d-spillovers-22pt18tohv.pdf

IFPRI has long argued that spending on agricultural research constitutes a sound investment in poverty reduction and agricultural and economic growth, through improvements in productivity. This argument is based partly on the reported evidence of high rates of return to agricultural research, typically believed to be in the range of 40–60 percent per year. Yet there continues to be controversy over whether these figures are to be believed, and over what they actually indicate. This study represents the first attempt to take a comprehensive look at all the available evidence on rates of return to investments in agricultural R&D since 1953, and the only attempt to do so in a formal statistical fashion. This report has compiled and documented the literature in ways that make it more accessible and more useful to other researchers and policymakers, as well as others interested in the evidence. The analysis reveals some systematic patterns and some sources of biases that make it easier to interpret the evidence and draw meaningful conclusions. (Excerpted from Summary by Per Pinstrup-Andersen)

http://impact.cgiar.org/sites/default/files/pdf/8.pdf

A meta-analysis of rates of return to agricultural R&D : ex pede Herculem?

Status of the World’s Soil Resources Main report

This paper reviews and compares the most common approaches used to evaluate public agricultural research investment. Ex post studies fall into two major groups: (a) consumer and producer surplus analyses, estimating average rates of return to research, and (b) production function analyses, estimating marginal rates of return to research. Ex ante studies fall into four groups: (a) those using scoring models to rank research activities, (b) those employing benefit-cost analysis to establish rates of return to research, (c) those using simulation models, and (d) those using mathematical programming to select an optimal mix of research activities.

Evaluating Returns to Agricultural Research: A Review

A framework is developed to assist economic planners and research administrators in making choices about priorities in the allocation of agricultural research resources. A multi-regional international trade model using concepts of economic surplus is employed to derive ex ante measures of the relative economic benefits of alternative commodity and
regional research portfolios and the distribution of these benefits among consumers, producers, importers and exporters...

Jeffrey S. Davis

Papers

Evaluating Returns to Agricultural Research: A Review

Assessment of agricultural research priorities : An International perspective

Disaggregation rather than Mathematical Manipulation for Incorporating Research Impacts on Supply

Disaggregation rather than Mathematical Manipulation for Incorporating Research Impacts on Supply

Across-Commodity Spillover Effects of Research and Opportunity Costs in Multi-Product Production Environment