ABSTRACT
This chapter explains the scale of research and development activity in different industrial countries. It focuses on the industrial distribution of research activities and at the scale of the support that the government gives to science and technology in different countries. The chapter examines whether there is any tendency for countries which devote a relatively high proportion of their gnp to research and development to experience relatively fast rates of growth. It discusses the international transfer of science and technology. The chapter focuses at one country, Japan, which has followed a policy of capitalizing on research and development done elsewhere and of having a relatively small indigenous research effort. It emphasizes that, for a firm to take the fullest advantage of published research results, it is necessary for it to have some research facilities. The chapter briefly outlines the more obvious reasons why there is no observable relationship between research and development expenditure and growth.
