The Impact of Intellectual Property Payments and R&D on Economic Growth: A Panel Analysis on Highly Industrialized Countries

Research and development (R&D) activities play a crucial role in facilitating economic growth. Numerous studies suggest that R&D activities have a positive influence on economic growth. However, according to endogenous growth models, the impact of research and development on growth is expected to diminish over time due to the principle of diminishing returns. This scenario implies that the significance of research and development activities in relation to economic growth warrants further examination. A robust connection exists between research and development and intellectual property rights. The safeguarding of intellectual property and information is vital for technological advancement. The evolution of information, technology, and patent systems heavily relies on investment in intellectual property. Considering these factors, a study was conducted to analyze the effects of R&D and intellectual property investments on economic growth within nine highly industrialized nations. This analysis utilized annual panel data spanning from 2004 to 2023. The findings of the study indicate that both research and development efforts, as well as expenditures on intellectual property, contribute positively to economic growth in these highly industrialized countries.