Education as a source of a heterogeneous effect of Research & Development

This thesis presents evidence of whether education is a source of heterogeneity in the effect of Research & Development (R&D). Research in this area is important for increasing knowledge about the effect of R&D on economic growth. The importance of the effect of R&D on economic growth is highlighted by the many studies which investigate the effect of R&D as well as by UNESCO Institute for Statistics (2017a) and by Hall et al. (2010). By employing unbalanced panel data for 94 countries over the period 1998-2014, this thesis presents evidence that shows that there is no significant effect of the interaction between education and R&D in the current state of the world. However, the evidence is suggestive, because there are some important limitations to this study.