As it is shown in the economic growth literature, the return of resources invested in research is expected to contribute to the higher growth rate of potential income of the economy. This paper examines this relation in case of Hungary based on data from the period 2000-2011. Three sources of GDP growth are the increase in labor, in the capital stock and technology development.
In our research project we built upon an econometric model which was used to estimate the potential impact of academic research on productivity and GDP. We applied this model and made a forecast on how public resources spent on universities and research institutes may influence the growth potential of the Hungarian economy.
Our model captures complex connections by illustrating the main links. More detailed exploration of the relationship between higher education, research institutes and companies requires more investigation.
HETFA was commissioned by the Agency for Education to execute this research project hand in hand with the elaboration of a possible indicator system for academic research.