Mission-oriented R&D and growth of Japan 1988–2016: a comparison with private and public R&D

We analyze the dynamic interaction of Japan’s total factor productivity (TFP), GDP, stocks domestic and foreign private public as well mission-oriented R&D, called GBARD in OECD statistics, a vector-error-correction model (VECM) for Japan with stock data period 1987–2016. Permanent policy changes show following main results: (i) R&D each encourage growth rates other TFP (ii) all have high internal return; (iii) policies affect are affected by R&D; particular, has positive impact on European whereas countries’ negative one. should be supported education enhancing especially number PhDs IT personnel.