Investigating Determinant Factors of R&D Intensity in Selected Developing and Developed Countries: Panel Data Approach

The aim of this study is to investigate the determinants of R&D intensity. ٌWe use time series observations for 12 developing countries and 14 developed countries over the period 1995-2006 as well as panel data analysis in identifying the determinanates of R&D intensity in these countries. This study focused on three explanatory variables: The intellectual property rights protection, economic openness and economic growth or demand pressure. Two variables, the number of researchers in R&D activities and value added of industry as a percentage of GDP are considered as control variables. The study results suggest that intellectual property rights protection variable has positive and significant role on R&D intensity and the variables economic openness and demand pressure are not statistically significant. Both control variables are statistically significant and the number of researchers in R&D activities variable for both developed and developing countries has a positive coefficient but value added of industry as a percentage of GDP variable has a positive coefficient for developed countries and negative coefficient for developing countries.