Email this article Patterns of Investing into Business R&D in South Africa
- Authors: Molotja N.1, Parker S.1, Mudavanhu P.1
-
Affiliations:
- Human Sciences Research Council
- Issue: Vol 13, No 3 (2019)
- Pages: 51-60
- Section: SCIENCE
- URL: https://journals.rcsi.science/1995-459X/article/view/347010
- DOI: https://doi.org/10.17323/2500-2597.2019.3.51.60
- ID: 347010
Cite item
Abstract
The paper explores the patterns of business investment in research and development (RD) using evidence from companies in South Africa, in comparison with indicators for a number of other countries. This study covers the period 2006–2016, the studied companies were grouped by the amount of RD expenditures (BERD), the number of reports on research performance for the first and last years of monitoring. A typical characteristic of private sector RD activities is the uneven distribution of resources in space and time. The major financial and other assets are concentrated within few large companies from a limited number of industries, while the majority of small and medium-sized enterprises invest in RD projects only sporadically, for a period of no more than two consequential years. Firms that perform RD for longer periods invest in RD incrementally and remain more persistent than enterprises performing less RD for shorter time periods. In view of the common nature of a number of patterns, these observations suggest different approaches to policies supporting RD performance in the business sector not only in South Africa, but also in other countries.
Keywords
About the authors
Neo Molotja
Human Sciences Research Council
Email: nmolotja@hsrc.ac.za
116-118 Buitengracht Street, Cape Town, 8001, South Arfica
Saahier Parker
Human Sciences Research Council
Email: sparker@hsrc.ac.za
116-118 Buitengracht Street, Cape Town, 8001, South Africa
Precious Mudavanhu
Human Sciences Research Council
Email: pmudavanhu@hsrc.ac.za
116-118 Buitengracht Street, Cape Town, 8001, South Arfica
References
- Antonelli C., Crespi F., Scellato G. (2013) Internal and external factors in innovation persistence // Economics of Innovation and New Technology. Vol. 22. № 3. Р. 256-280.
- Average Salary Survey (2019) South Africa - 2018/19. Режим доступа:https://www.averagesalarysurvey.com/south-africa, дата обращения 22.06.2019.
- Berry A., von Blottnitz M., Cassim R., Kesper A., Rajaratnam B., Ernst van Seventer D. (2002) TIPS - The Economics Of SMMES In South Africa. Режим доступа:http://www.tips.org.za/research-archive/trade-and-industry/item/204-the-economics-of-smmes-in-south-africa, дата обращения 12.05.2019.
- Cohen W.M., Levinthal D.A. (2006) Absorptive Capacity: A New Perspective on Learning and Innovation // Administrative Science Quarterly. Vol. 35. № 1. Р. 128-152.
- Government of Canada (2019) SR&ED Tax Incentives. Режим доступа:https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program/claim-sred-tax-incentive-what-tax-incentive.html, дата обращения 27.05.2019.
- HSRC (2017) South African National Survey of Research and Experimental Development: Main Report 2016/17. Pretoria: Human Sciences Research Council.
- Kang T., Baek C., Lee J.-D. (2017) The persistency and volatility of the firm R.
- Manez J., Rochina-Barrachina M, Sanchis-Llopis A., Sanchis-Llopis J. (2009) The role of sunk costs in the decision to invest in R.
- Manez J., Rochina-Barrachina M., Sanchis-Llopis A., Sanchis-Llopis J. (2010) The Role of Learning in Firm R&D Persistence. FUNCAS Working Paper 500. Madrid: FUNCAS.
- NRC (2019) About the NRC Industrial Research Assistance Program. Режим доступа:https://nrc.canada.ca/en/support-technology-innovation/about-nrc-industrial-research-assistance-program, дата обращения 22.06.2019.
- OECD (2010) Innovation Vouchers. Paris: OECD. Режим доступа:https://www.oecd.org/innovation/policyplatform/48135973.pdf, дата обращения 19.05.2019.
- OECD (2015) Frascati Manual 2015. Guidelines for Collecting and Reporting Data on Research and Experimental Development. Paris: OECD.
- OECD (2017) OECD Science, Technology and Industry Scoreboard 2017. Paris: OECD. Режим доступа:https://www.oecd-ilibrary.org/science-and-technology/oecd-science-technology-and-industry-scoreboard-2017_9789264268821-en, дата обращения 22.06.2019.
- OECD (2019) OECD Main Science and Technology Indicators 2018. Paris: OECD.
- Rammer C., Schubert T. (2016) Concentration on the Few? R&D and Innovation in German Firms 2001 to 2013. ZEW Discussion Paper 16-005. Karlsruhe: Centre for Economic European Research. Режим доступа:http://ftp.zew.de/pub/zew-docs/dp/dp16005.pdf, дата обращения 13.03.2019.
- Rosa J.M., Mohnen P. (2013) Doing R&D in a Closed or Open Mode: Dynamics and Impacts on Productivity. MERIT Working Paper 060. Maastricht: United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Rosenberg N. (1976) On Technological Expectations // The Economic Journal. № 86(343). Р. 523-535.
- Rumbelow J., Blankley W. (2012) Concentration, persistence and volatility of R&D performing businesses in South Africa from 2001 /02 to 2008 /09 with implications for measurement excellence and policy impact. Paper presented at the MEIDE (Micro Evidence on Innovation and Development) Conference, 21-23 November 2012, Cape Town, South Africa.
- Schellings R., Gault F. (2002) Size and Persistence of R&D Performance in Canadian Firms 1994 to 2002. Catalogue 88F0006XIE, № 008. Ottawa: Statistics Canada.
Supplementary files
