The Key Concepts in economics Assignment Example | Topics and Well Written Essays - 750 words

The Key Concepts in sparings - Assignment ExampleThe main points included in the article (Porter, 2015a) are4. The creation through and through government and corporate funded R&D have generated large revenue streams. However, the beneficiary organizations have not shared the reinforcement bodies in profits and reinvestment in R&D has been limited.5. Since corporations are moving away from research spending, they tend to buy innovative start-ups from small businesses. Scientists and universities have also been encouraged to commercialize innovation funded by taxpayers money (Porter, 2015a).Investment in R&D sector powers technological innovation, which helps to optimize the use of existing resources and capabilities, creates jobs and improves living standards. It enables sustainable economic growth provided that there are constant returns to the R&D sector. Innovation through research and development therefore has a positive correlation with per capita gross domestic product in bo th the developing and developed worlds. However, it has been found that large markets encourage innovation through R&D, while the rest benefit from their knowledge acquit and spill-over (Ulku, 2004). This allows emerging markets to grow faster by embracing existing technologies, while developed markets experience periods of stagnation due to foreign competition and limited funding directed towards R&D. The ever increasing restrictions on economic activities, such as environmental protection regulations, in the developed world also slows humble the progress in terms of GDP. However, aside from poor regulations which can lead to additional costs in R&D, many regulations are aimed at genial welfare initiatives usually not captured in the GDP measurements. Thus, the GDP growth figures in such contexts can often be misleading (The Economist, 2013a). The innovation impelled boom and bust may remain invisible in GDP measurements and sometimes even reveals its shrinking. For instance, t he spending of a person on telephone calls