Wednesday, June 30, 2010
[IWS] BEA: RESEARCH AND DEVELOPMENT SATELLITE ACCOUNT [30 June 2010]
IWS Documented News Service
Institute for Workplace Studies----------------- Professor Samuel B. Bacharach
School of Industrial & Labor Relations-------- Director, Institute for Workplace Studies
16 East 34th Street, 4th floor---------------------- Stuart Basefsky
New York, NY 10016 -------------------------------Director, IWS News Bureau
Bureau of Economic Analysis (BEA)
Research and Development Satellite Account [30 June 2010]
2010 Satellite Account Underscores Importance of R&D
[full-text, 5 pages]
Gross Domestic Product (GDP) would have been, on average, 2.7 percent, or $301.5 billion higher between 1998 and 2007 if research and development (R&D) spending was treated as investment in the U.S. national income and product accounts, the Bureau of Economic Analysis (BEA) announced today. The 2010 R&D Satellite Account updates and extends BEA’s estimates of the effect of R&D on economic growth through 2007, and now includes coverage of the most recent business cycle expansion.
R&D accounted for about 6.3 percent of average annual growth in real GDP—that is, GDP adjusted for inflation—between 1998 and 2007, and 6.6 percent between 2002 and 2007. To put the contribution of R&D in perspective, the business sector’s investment in commercial and other types of structures accounted for just over 1.3 percent of average annual growth in real GDP between 1998 and 2007.
Highlights of the release include:
By treating R&D as investment, real GDP increased at an average annual rate of 3.0 percent over the period 1998-2007. As in previous periods, growth in R&D investment continued to track business cycles. R&D’s contribution to growth slowed in 2001 and 2002, recovered in 2003, and outpaced the expansion through 2007. In 2002, business sector R&D subtracted from growth, but was more than offset by contributions from the government and nonprofit sectors.
AND MUCH MORE...including TABLES & CHARTS....
This information is provided to subscribers, friends, faculty, students and alumni of the School of Industrial & Labor Relations (ILR). It is a service of the Institute for Workplace Studies (IWS) in New York City. Stuart Basefsky is responsible for the selection of the contents which is intended to keep researchers, companies, workers, and governments aware of the latest information related to ILR disciplines as it becomes available for the purposes of research, understanding and debate. The content does not reflect the opinions or positions of Cornell University, the School of Industrial & Labor Relations, or that of Mr. Basefsky and should not be construed as such. The service is unique in that it provides the original source documentation, via links, behind the news and research of the day. Use of the information provided is unrestricted. However, it is requested that users acknowledge that the information was found via the IWS Documented News Service.
Director, IWS News Bureau
Institute for Workplace Studies
16 E. 34th Street, 4th Floor
New York, NY 10016
Telephone: (607) 255-2703
Fax: (607) 255-9641