The Impact of the Return of Research and Development on Economic Growth (Using Regression Quintiles Model)

One of the most important subjects in the field of industry and education is identification and isolation of the return of investment in research and development and its impact on economic growth. Since the cost of this type of investment is usually high, policymakers want to make sure that it is the real return and how it can be measured. In this study, the main goal is to investigate the effects of indirect R & D on economic growth in countries. To this end, we use regression quintiles model. Results show there is significant and positive relationship between spending on R & D and innovation as well as inventions and costs of training with GDP in high income and upper middle income countries. Also in high income countries, the higher the level of income of a country, human capital, human resource training, and the amount of inventions, play a greater role in explaining their output growth compared to labor and physical capital. While in upper middle income countries, physical capital still plays a major role in GDP growth.