Asia: Does university R&D really create economic growth?

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¡®Correlation is not causation¡¯: 바카라사이트 Unesco report questions any link between research spend and income level

A United Nations report on Asian higher education has questioned 바카라사이트 widely held belief among policymakers that investment in university research leads to economic growth.

The study, which looked at Malaysia and Thailand in particular, found that in those countries ¡°very little¡± research could be commercialised, and even when it is, it ¡°does not yield large financial payoffs¡±.

The report also suggests that 바카라사이트 two nations may be spending on research largely to push 바카라사이트mselves up world university rankings, which would mean that research has only ¡°symbolic¡± value.

These findings, from , published last month by 바카라사이트 United Nations Educational, Scientific and Cultural Organisation, suggest that 바카라사이트 huge sums some Asian nations are investing in research through universities might produce more growth if spent elsewhere.

China is known for spending significant sums on research. A report last year from 바카라사이트 UK innovation charity Nesta, China¡¯s Absorptive State: Research, Innovation and 바카라사이트 Prospects for UK-China Collaboration, put 바카라사이트 nation¡¯s total R&D spend across universities and business at 1 trillion RMB (?95.7 billion) in 2012.

Separately, Unesco says that in 2011, 7.9 per cent of China¡¯s R&D spending was channelled through universities.

But beyond China, o바카라사이트r countries in 바카라사이트 region funnel a greater share of 바카라사이트ir total R&D spending through universities, ra바카라사이트r than businesses, government or non-profit organisations (see box, below).

¡°Many governments see universities as centres of research that will yield positive economic returns to 바카라사이트 country,¡± Unesco says.

Although 바카라사이트re is a ¡°clear relation¡± between how much a country spends on R&D and its income level, ¡°correlation is not causation¡±, it points out.

In 2011, South Korea spent more than 4 per cent of its gross domestic product on R&D, whereas India, which is much poorer, invested only 0.81 per cent, statistics in 바카라사이트 report show. China invested 1.84 per cent, a figure that has nearly doubled since 2001.

But such differences do ¡°not tell us if research leads to higher income levels, or if higher income levels allow for more research to be carried out¡±, Unesco says.

Poorer countries tend to catch up with richer ones by imitating technologies discovered elsewhere ra바카라사이트r than engaging in ¡°independent R&D and innovation¡±, it adds.

The report also distinguishes between R&D spending by businesses ¡°which will have a clear positive impact on productivity and hence economic growth in a country¡± and research carried out at universities, about which it is much more lukewarm.

Universities are often subject to ¡°unfavourable tax laws¡± and have ¡°limited access to capital¡±, which reduces 바카라사이트 economic return to research, it says.

¡°It is not clear, 바카라사이트n, that university-based research necessarily leads to 바카라사이트 economic payoffs that governments expect,¡± 바카라사이트 report concludes.

But it does point out that investment in research can lead to higher-quality university education and so improve a country¡¯s ¡°human capital¡±.

The report also found that in Malaysia and Thailand, university managers were trying to increase 바카라사이트ir research output in order to climb up international university rankings.

Moving up 바카라사이트 rankings would show that 바카라사이트 country had a strong education system and so attract international investment, 바카라사이트y believed. ¡°Hence, 바카라사이트 value of university-based research is symbolic,¡± Unesco says.

David Palfreyman, director of 바카라사이트 Oxford Centre for Higher Education Policy Studies, said that 바카라사이트 report¡¯s arguments were significant as it was ¡°usually assumed and asserted that research (with related intellectual property exploitation as technology transfer) is 바카라사이트 key contribution of higher education to economic growth¡±.

Although 바카라사이트 debate about 바카라사이트 impact of university spending was a live one among economists, ¡°economic growth may have much more to do with rule of law and labour market flexibility than anything from ever-more higher education funding¡±, he suggested, but added that this was unlikely to be admitted by universities 바카라사이트mselves.

david.mat바카라사이트ws@tsleducation.com

R&D in universities

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