This paper summarizes the literature on economic growth. This literature suggests that investment in machinery and equipment (M&E) could foster economic growth. But, because of the need to cover the fixed costs of innovating, price is higher than the marginal cost and there will be...

This paper looks at the reasons for Canada’s low business research and development (R&D) intensity. R&D performance across OECD countries is examined, and a detailed decomposition is undertaken of differences between Canadian and U.S. R&D levels across industries. Canada’s low aggregate R&D...

A key parameter in determining the response of investment to changes in its price is the user cost elasticity. But the empirical evidence on the user cost elasticity is mixed.. Traditional macro-econometric estimation has yielded a value close to zero whereas newer micro-econometric estimates...

This paper looks at the increasing trend around the world to evaluate the quantity and quality of universities’ research output. Evaluations can provide a useful role in clarifying the performance of university research, and give incentives to increase research output and quality because of...