Francois, Patrick; Lloyd-Ellis, Huw - Economics Department, Queen's University - 2006
that the procyclicality of R&D investment is, in fact, quite consistent with at least one of these theories. In our … analysis, we emphasize three key features of R&D investment relative to other types of innovative activity: (1) it uses … knowledge intensively, (2) it is a long-term investment with uncertain applications and (3) it suffers from diminishing returns …