The Effect of RD Efforts on Value added in Iran’s industrial sector

Research and development is an important economic issue that causes technological changes and therefore has a significant role in development of technology and increasing value added. In this study, the effect of RD efforts on value added of Iranian industries is investigated by applying panel data method. The results indicate that internal RD expenditure has a significant and positive effect on value added of Iranian industries. Therefore, the policy recommendations of this study suggest that the government should support RD efforts of industries in order to improve their technologies and production methods.