Korean Government R & D Expenditure Policy : An Evaluation and A Future Direction

Abstract

Much Works have been done to find out relationships among R&D investment, industrial innovation, and economic growth, and to develop models from these findings aiming at describing and predicting R&D expenditure and economic development. However, these models cannot be directly adapted without modification as guidelines of R&D budget assessment and optimal allocations. This paper, by adapting important ideas from these previous works and introducing some ideas from public expenditure theory, will develop a model to be used as a guideline for evaluation of R&D expenditure policy and analyze current Korean government R&D expenditure policy.