The Influences of RD Expenditures on Knowledge-Based Economy in Taiwan

摘要

This article adopts Multivariate Time Series Approach to analyze the impacts of research and development (R&D) on overall economy. By using Johansen-Juselius Cointegration Methodology and Vector Autoregression (VAR) approach, we analyze the causality between R&D and economic contribution, such as employment, investment and consumer's expenditures. The results suggest that in the long term, public funded R&D expenditures has stronger long run dynamics of the relationship to investment and employment than private funded R&D does. Moreover, the study also proves that a four-year lagged effect of R&D expenditure existing to employment and investment.