Alfranca, O.; Huffman, Wallace E.

Agricultural Economics Vol. 25 no. 2-3 (September 2001): 191-198.

he objective of this paper is to present econometric evidence of the effects of economic incentives and institutions on national aggregate private agricultural R&D investments. An econometric model of national aggregate annual private R&D investment is specified and fitted to panel data consisting of seven EU countries (Austria, Germany, Italy, The Netherlands, Portugal, Spain and Sweden) over 1984ﾖ1995. We find strong impacts of both incentives and institutions on private agricultural R&D investment. Including institutional factors strengthens the story and in some cases greatly changes the results.