EXPLORING THE DETERMINANTS OF R&D INVESTMENT IN THE ASIAN CONTEXT BEFORE AND AFTER COVID19

Abstract

The article aims to study the mechanisms underlying the development of research and development (R&D) through investment in renewable energies and in ICTs before and after the Covid19 pandemic. First, we perform a dynamic panel regression through panel data from 2000 to 2019 for 14 Asian countries. In addition to economic and environmental determinants, the empirical study reveals that variables linked to intellectual property are the drivers of R&D investment in the Asian region. It is interesting to note that while brand requests stimulate R&D, industrial applications hamper this type of investment. Second, we provide an OLS regression of 38 Asian countries to analyze the effect of Covid-19 on research and development. Our empirical results encourage governments to invest more in renewable energies not only to reduce the greenhouse effect, but also to increase investment in R&D. In addition, policymakers are urged to apply more incentives to expand the export of ICT in both services and products.

Keywords

• dynamic panel regression
• research and development
• pollution exposure
• renewable energy
• ict export