The Evolving Role of Public R& D and Public Research Organizations in Innovation

Abstract

Public research and development plays a crucial role in technological advances and development and indirectly contributes to economic growth. Business sectors depend on public research to produce innovations of commercial significance, and many countries have, since the late 1970s, changed their legislation to regulate or facilitate IP ownership and promote increased commercialization of the results of public research. These “third mission” policies were intended to increase the economic effect of public investments in research and development. Maximization of the economic impact of academic research will happen only when the private sector uses and builds on research done in the public sector and when industrial research complements and also guides basic research. The chapter explores cross-country trends in public research and development and outlines the challenges faced by high, middle- and low-income countries in increasing their research and development and knowledge transfer capabilities.