Koomin Kim
ABSTRACT
Considering the importance of R&D development and significant growth in R&D sector in the information technology era, it is crucial to examine the effect of budgetary institutions and aggregate individual characteristics. In this regards, this study empirically examines the impact of legal constraints and aggregate individual characteristics on state R&D related funding and expenditures by applying a system GMM analysis during the 17-year period (2000-2016).Several new findings are identified in this study. Budgetary institutions including legislative term limits and supermajority requirement effect state innovative capacity, and state R&D spending. State development and human capacity promote innovative capacity and R&D development, and Catholic work ethic enhances innovative capacity. Fiscal burden prevents states from promoting innovative capacity and R&D development, whereas economic downturn can serve as a motivator for additional spending on R&D activities for enhancing innovative capacity and R&D development. Further, these significant factors also reveal the long-term effect.
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