The rate of profit represents a central concept in economics and is commonly seen as one of the most accurate indicators for economic vitality of firms, industries, and regions. The level of profit rates is supposed to guide investment shifts between sectors and over space, the speed and...

We study the cyclicality of public R&D in 28 OECD countries (1995 - 2017). While procyclical on average, public R&D reacts asymmetrically over different phases of the business cycle and becomes acyclical during recessions. It is also heterogeneous across countries: Innovation leaders and...