On the cyclicality of R&D activities

Abstract

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Turbulent Growth: Business Dynamism and Aggregate Productivity

“…The labor force growth rate, λ, for the US is 1% per year. The parameter η is set to 0.55 to match the return to labor in R&D in the US based on NSF data (Mand, 2019). Following Lee and Mukoyama (2015), establishment-level relative productivity of entrants is on average 0.96. β = 0.987 is selected to match, anticipating a growth rate of per capita consumption of 2.6%, a real rate of return of approximately 4% (Gomme et al, 2011).…”

The role of public loans in financing business R&D through the economic cycle

“…In a recent study, Mand (2019) proposes a new mechanism for explaining the pro-cyclicality of R&D. He develops a real business cycle model with endogenous innovation, but uses a specification that allows for multiple inputs including scientists, staff and final goods which complement each other. As goods are scarcer in 2 Also related to the Schumpeterian growth literature, there is long-standing research that analyses the role of innovation over the business cycle and over long waves of technical change (Rosenberg and Frischtak 1984;Perez 2010).…”