Alfred P. Sloan Foundation and Coefficient Giving - Economic Research on the Returns to R&D Investment

A consortium of funders, led by the Alfred P. Sloan Foundation and Coefficient Giving, is seeking to support primary research that can help develop consensus estimates of the return on investments in research and development (R&D). This coordinated call aims to spur rigorous, empirical studies that can narrow the range of existing estimates and inform public and private R&D investment decisions; it is being conducted as part of the Pop-Up Journal initiative. What is the social and economic return on investment in R&D? This question — often called “the Griliches Question” after the economist Zvi Griliches, who pioneered its study in the 1950s — has significant policy implications. The US government currently spends roughly 0.6% of GDP on scientific and technological R&D. It does so on the belief that this investment generates substantial benefits. But there is little consensus on how large those benefits are. Estimates range from roughly $2 in benefits per $1 invested, to $10 or more. Answering this question presents complexities across data, measurement, operationalization, and identification. But there are reasons to believe that significant progress is possible. This consortium challenges scholars to produce the research necessary to build towards consensus on this difficult but vital question. See theguidelinesfor more details.