Spillover Effects of Research and Development Activity on the Economic Growth and Exports of the Group 20

The study examines the spillover effects of research and development (R&D) activity on the economic and export growth of the Group 20. It explores the magnitude of the strategic relationship between R&D activity and the economic performance of these countries. The sample is restricted to the period of time for which annual data are available and comparable, which is the period from 1988 to 2011, for 19 countries in the Group 20. A panel cointegration test and several types of panel data analytic models were employed. Although some differences were found in the magnitude of the effect, this study indicates that R&D activity must be viewed as a major strategic determinant for the economic performance of the countries, and thus as the creator of unique competitive advantages for them. It is also noteworthy that human capital and information technology are positively associated with the economic performance of the countries