DP10482 How Much Science? The 5 Ws (and 1 H) of Investing in Basic Research

Author(s): Hans Gersbach, Ulrich Schetter, Maik Schneider
Publication Date: March 2015
Keyword(s): basic research, economic growth, growth policy
JEL(s): H41, O38
Programme Areas: Public Economics, Industrial Organization
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=10482

The aim of this paper is to identify possibilities for guiding policy in the area of basic research. We provide an extended review of basic research and offer new insights on its linkages to key economic variables and economic growth. After defining what basic research is, we identify and discuss a series of emerging policy issues by asking why we should invest in basic research, who should invest how much in basic research and when, over the course of a country’s development? We finally address the question where investments in basic research should be targeted. Moreover, we explain why many pressing issues regarding basic research policy deserve to be explored further.