The Relationship Between R&D Expenditures and Economic Growth: Panel Data Analysis 1990-2013
In the world of globalization, economic growth is associated with the amount of innovation created. The expenditures on new product development thus R&D is the main factor for the economic growth of both developed and developing countries. R&D expenditures are in the center of new growth theories. The countries that produce technologically advanced products have the ability to compete internationally and show progress in production levels and qualities. The purpose of this study is to explore the relationship between R&D expenditures and economic growth using panel data analysis. As a result of the analysis, covering 15 OECD countries for the period between 1990 and 2013, a positive relationship has been determined between R&D expenditures and economic growth.