DYNAMICS OF INDUSTRIAL-RESEARCH AND DEVELOPMENT

A study on the dynamics of R&D activities is described. It is well known that R&D activities are the key factors in technological innovation. However, the empirical analysis shows how the R&D investment works and contributes to production. A framework of an extended input-output model involving R&D activities as a "knowledge stock" is discussed. The results and findings of the surveys relating R&D and investment to production are described. The managers of certain projects in the firms are asked about their R&D investment. duration and investment for production. The main results are: (i) although the database covers quite restricted activities the "scale of economy" of R&D activities can be ascertained, and (ii) the two independent surveys separated by twelve years give identical scale factor, suggesting the stability of R&D activities.