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RETURN OF INVESTMENT REGARDING EDUCATION, RESEACH

 

 

Basic research

 

Creativity (in SME)

 

Crime

 

Education

 

e-Government

 

Environment

 

Employment Job Stability

 

European Market

 

Health

 

ICT

 

Innovation

 

Knowledge, Kn.management

 

Labour market mismatches/Costs

 

Malnoutrition

 

Migrations

 

Patents

 

Poverty Reduction

 

Prevention

 

Productivity

 

Recreation

 

R&D

 

Public Health

 

Technical Progress

 

Science Centres

 

Wage / cuts

 

Miscellaneous

 

 

The objective of this document/file is to allow policy oriented parties a quick scan of the Return of Investments and multipliers regarding investments in education, innovation, research, tax measures, wage cuts etc related to economical benefits (e.g. GDP).

 

The inventory may not be considered to be conclusive. All research referred to is or was criticised etc. See Comment

 

All information is or was publicly available on the internet or in print.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Last update, Oct 1th, 2017

 

 

 

Basic Research

·        For each per cent extra invested n public R&D, there is an extra 0.17 per cent growth in productivity. … Further more, public R&D has a ‘crowding-in’ effect which leads to additional business investment.(CORDIS, RCN 23959 June 10th, 2005; http://dbs.cordis.lu/cgi-bin/srchidadb?CALLER=NHP_EN_NEWS&ACTION=D&SESSION=&RCN=EN_RCN_ID:23959 )

·        Alan Greenspan: 70 percent of the American economy is based on fundamental research (In (NL) Elsevier, September 15th, 2001; quoted in Elsevier 24-11-2001; p. 100)

 

 

Creativity

Does innovation really deliver? How much? “The innovators achieved median profit margin growth of 3.4% a year since 1995, compared with 0.4% for the median Standard & Poor's Global 1200 company. That's a huge achievement, thanks in large part to innovation. And the group's median annual stock return of 14.3% was a full three points better than the S&P 1200 median over the decade, according to a study done for BusinessWeek by The Boston Consulting Group using data from Standard & Poor's Compustat.”

Source: In: Business Week; April 24, 2006: Special Report: PROFIT MARGINS; Pg. 76 Vol. 3981  

CREATIVITY PAYS. HERE'S HOW MUCH, By David Henry

 

Crime

·        "Pro invested pound, 21 pounds of damage is prevented." Mr. C. McMurdie, PCeU (Police Central e-Unit) (In: de Spits 8/11/2010)

 

Education

·        A one percentage point increase in public expenditure on education (as % of GDP) is associated with a 6 percentage point increase in the participation rate in adult education and training.     P.45 An in-depth analysis of adult learning policies and their effectiveness in Europe (European Commission, Directorate General for Employment, Social Affairs and Inclusion.) Note: there is in 2.2. of the source a good review of revenues...but copying a dozen pages would violate IPR, wouldn't it? ;-)  in 2015’s http://ec.europa.eu/epale/sites/epale/files/all_in-depth_analysis_of_adult_learning_policies_and_their_effectiveness_in_europe_12.11.2015_pdf.pdf

The What Works Evidence Review (2014) examines 71 studies of training programme impacts in OECD countries with persuasive evidence of causal impact. These studies show that in around half there are positive impacts on employment or earnings (35) and a further 22 where some groups of learners or some of the training had the same positive impacts. See P47 (EU's An in-depth analysis of adult learning policies and their effectiveness in Europe . European Commission, Directorate General for Employment, Social Affairs and Inclusion.)

·        What are the returns on higher education for individuals and countries?

·        On average across 25 OECD countries, the long-term economic advantage to an individual of having a tertiary degree instead of an upper secondary degree is over USD 175 000 for a man and USD 110 000 for a woman.

·        The long-term economic advantage to individuals with a tertiary education is about twice as large as the advantage for people with an upper secondary education as their highest educational level, on average across OECD countries.

·        The net return to taxpayers on the public costs of supporting a man in higher education is over USD 91 000, and the return for supporting a woman in higher education is over USD 55 000, on

·        average across OECD countries.

www.oecd.org/edu/skills-beyond-school/Education%20Indicators%20in%20Focus%206%20June%202012.pdf

·        International Experience – benefits. Researchers at the University of Florida charged three groups of students with the same set of creative tasks (Lee, C. S., Therriault, D. J. and Linderholm, T. (2012), On the Cognitive Benefits of Cultural Experience: Exploring the Relationship between Studying Abroad and Creative Thinking. Appl. Cognit. Psychol., 26: 768–778. doi: 10.1002/acp.2857.). One group consisted of students who had studied abroad, another group consisted of students planning to study abroad and the third group was composed of students who were determined to stay in the United States. It appeared that the creative skills of the internationally experienced students were by far the most advanced. Internationalisation offers challenging educational pathways and potentially makes students smarter, more creative and more enterprising. William Maddux, INSEAD professor and an expert on the internationalisation of education, confirms this view: ‘People who have international experience are better problem solvers and display more creativity. What’s more, we found that people with this international experience are more likely to create new businesses and products and to be promoted.’ (Maddux et al. Expanding Opportunities by Opening your Mind – Multicultural Engagement Predicts Job Market Success Through Longitudinal Increases in Integrative Complexity. Social Psychological and Personality Science December 11, 2013. Quote from Time Magazine, see http://time.com/#79937/how-studying-or-working-abroad-makes-you- smarter/.) IN: www.government.nl/binaries/government/documents/letters/2014/07/21/government-s-vision-on-the-international-dimension-of-higher-education-and-vet/vision-on-the-international-dimension-of-higher-education-and-vet.pdf

·        Teacher Quality: Raj Chetty (Uncharted: Big Data as a Lens on Human Culture (Erez Aiden, Jean-Baptiste Michel) pg14) reports on decennia of datasets analysis of the Internal Revenu Service and long term effect studies on the impact of a good teachers on the life of their students: “They found that a good teacher can have a discernable influence of student’s likelyhood of going to college, on their income for many years after graduation, and even on their likelyhood of ending up in a good neighborhood later in life. The team then used its findings to help improve measures of teacher effectiveness.”

·        Education at a Glance 2010, pg 135 ’net public return to an investment in tertiary education is USD86,000...” PM  Isn’t that the ‘city effect’?

·        July 2011: Class size (pupils): Smaller Classes 's RoI can go up to 20%. Long-term effect of class size. Peter Fredrikson e.a. IZA Discussion Paper No. 5879, July 2011

·        7/12/2010 Children that read perform better www.nu.nl/wetenschap/2396516/lezende-kinderen-doen-maatschappelijk-beter.html

·        8/9/2010 High Educated Profitable for Government www.nu.nl/economie/2328460/hoogopgeleide-levert-overheid-geld-op.html  

·        22/4/2010 Each invested Euro in Higher Professional Education triples in 40 years  Press: w.hbo-raad.nl/component/content/article/29/659, report: www.hbo-raad.nl/hbo-raad/feiten-en-cijfers/doc_download/1157-eindrapportage-kosten-batenanalyse-investeringsplan-kwaliteit-als-opdracht

·        "The vast literature on private returns to education has consistently shown that schooling is a good investment. Schooling is a major input in the building up of human capital, and one additional year of schooling tends to increase a worker's wage by something between 5 and 15% (e.g. Psacharopoulos and Patrinos, 2004). (pg 5; Canton, Erik, 2008, The social returns to education (macro evidence), European Commission.

·        Costs of mismatch “Approximately 2000 euros per full-time worker.” [Yearly, I checked that with ROA] in www.roa.unimaas.nl/pdf_publications/2008/ROA_TR_2008_6.pdf. (It has also been published: Eijs, P. van, en Heijke, H., (2000), ‘Mismatch between occupation and education and the costs and benefits of job-related training’, in: Heijke, H., en Muysken, J. (Eds), ‘Education and training in a knowledge-based economy’, Houndmills/London/ New York: Macmillan, 159-189.

·        2007 (April); Raising average training levels by one year results in 2 to 8 % higher production. Individuals themselves benefit too: each extra year of schooling results in 5 to 15 % higher incomes during their entire career. Next to that, there are multiple benefits regarding health improvements, lower crime rates and transfer of knowledge to new generations. Source: www.cpb.nl/nl/pub/cpbreeksen/memorandum/177/memo177.pdf

·        Estimates for European countries show that a 1 per cent increase in training days leads to a 3 per cent increase in productivity, and that the share of overall productivity growth attributable to training is around 16 per cent (CEDEFOP European Centre for the Development of Vocational Training). 2007. Building a European VET area, Agora conference (Thessaloniki). 2010. Skills supply and demand in Europe: Medium-term forecast

·        2006 Illiteracy. In the EU Member State of the Netherlands 11% of a ±16 mln people is functionally illiterate. That costs their economy ± 0.5 bln (euro) pro year. Three out of four of these illiterates are unemployed, their vascular risk is about 8 times higher than normal. “Bringing the 11% down to 10% would lead to 2% less unemployed people in the Netherland” said Minister Wijn of Economical Affairs, receiving the report. Sources: report ‘Stil vermogen’; 7/9/2006; H. Maassen van den Brink, W. Groot, i.o.v. Stichting Lezen en schrijven. Newsarticle: de Volkskrant Sept. 7th, 2006 (pg 3).

·        2006 Researched in the UK (May 2006) The impact of investments in Higher Education is huge: every pound generates 1,52 £ supplementary economical output elsewhere within the economy. Every 100 labour force units in higher education co produce 99 ones elsewhere.

Source: www.scienceguide.nl/article.asp?articleid=100856#intro

·        2005 Effectof Human Capital on the growth of labour productivity 0.7; of which 0.3 experience and 0.4 education. Source: Macro economische Verkenningen 2005, Speciaal onderwerp. Arbeidsproductiviteit en participatie. Pg.146, table 6.1.

·        2005 Empirical research shows that each year of extra education leads to an increase of the employee’s income by an average of 6 to 7%. Source: Macro economische Verkenningen 2005, Speciaal onderwerp. Arbeidsproductiviteit en participatie. Pg.143-144.

·        2004Research shows that a one year increase of the average educational level of the population, leads to an (structural?) increase of 0.3% GDP. (Referred to is SCP research ‘ Macro Economische Verkenningen, ±June 21th, 2004). Source: Fin. Dagblad July 28th, 2004

·        2004An extra investment in the Human Capital budgets by 1 billion Euro results in an increase of the GDP by 100 million Euro (0.026% GDP) CPB Memorandum  nr. 24, 10 jan 2004Eric Canton; Onderwijs, R&D en economische groei; p22.

·        2003

Table 6.1 Overview of individual and societal value of prosperity and return of investment (RoI) effects of (one extra year) of education pro year; in EURO

 

Prosperity effects of one year education

RoI effects of one year extra education for society

For the individual

For society

Effect year of education on

 

 

 

-  Health

300-1380

5.4-12.4 billon

 

-  Crime

 

 

578 million

-  Social cohesion

   (maatschappelijke participatie)

3432

41.2

billion

 

-  Social security

 

 

 

 

 

 

492 million

Total

   RoI of one year of education

 

 

1.1 billon

Total

   Prosperity effect of one year

   of education

3432-4812

46.6-53.8

billion

 

Source

‘Investeren en terugverdienen, inverdien en welvaartseffecten van onderwijsinvesteringen (symposium uitgave). Rapport voor SBO September 2003, Wim Groot en Henriëtte Maassen van de Brink. Pg. 86

Note

-         the years budget of the ministry of education, culture and science of this 16 million people country is approximately 25 billion Euros.

·        2003 1 year of education leads to 15% more productivity (pg 10), Countries that have an investment in education, more than 1 standard deviation (s), have a 1% higher GDP growth in return  (pg 9). A cited study (Barre (1997); increasing education levels by 1 year, leads to an extra 1.3% GDP. (pg 49)

Source: ‘Investeren en terugverdienen, inverdien en welvaartseffecten van onderwijsinvesteringen (symposium uitgave). Rapport voor SBO Januari 2003, Wim Groot en Henriëtte Maassen van de Brink. Pg.10 (Yes, yes; same title/authors, different publication)

·        Loss of investments

·        Hans Heijke heeft onderbenutting over gezegd:

·        1997 An empirical comparison of 4 sorts of relationships between employer and employee showed: Employees perform better on core tasks, demonstrated more citizenship behaviour, and expressed a higher level of affective commitment tot the employer when they worked in a over investment (by the employer) or mutual investment relationship than when they worked in a quasi spot contract or under investment relationship. Source: Alternative Approaches to the employee-organization relationship: does investment in employees pay off? Anne S. Tsui and others. In: Academic Management Journal 1997, vol 40, No 5. 1089-1121.

·        1997 One year of extra scholing to a higher level leads to  an increase of the economic growth by 1.2 % pro year. Barro (1997) Determinants of Economic Growth: A Cross-Country Empirical Study (Cambridge, MA: MIT Press).

 

eGovernment

..e-savy champions include Denmark, which recently reporte saving taxpayers a whopping 150 million euro and business 50 million euro a year by introducing an electronic invoicing system.

Source:http://europa.eu.int/rapid/pressReleasesAction.do?reference=IP/06/523&format=HTML&aged=0&language=EN&guiLanguage=en

 

Environment

Water

·        Bron: http://www.europa.eu.int/comm/environment/chemicals/pdf/impact_on_environment_report.pdf, p.38, table 6.2

 

Employment Job Stability

·        …there is an inverse relationship between labour market flexibility and the proportion of managers in the group of 20 OECD countries studied     ….       the analysis corroborates the references that are made towards  a number of empirical studies, finding a positive relationship between high trust employment relations and labour productivity

Source: ESB 25-2-2005; pg 86-91 De schaduwzijde van arbeidsmarktflexibilisering S. Storm & C.W.M. Naastepad

 

 

Health

·        Physical Exercise reduces chances for 13 out of 26 varieties of cancer http://archinte.jamanetwork.com/article.aspx?articleid=2521826

 

ICT

·        ICT Between 2000 and 2004, ICT was accountable for almost 50% of the growth in productivity within the EU; software and IT services growing fastest (5,9% in 2006/2007). Source: www.europe-innova.org/index.jsp?type=page&cid=7754&lg=en

 

European Market

* The Unified Internal (EU15) European Market is responsible for a 10% increased wealth level as mutual trade is 30-60% above the levels without an unified internal market. CPB Macro Economische Verkenning 2006 (2005, p152), CPB en CSP Marktplaats Europa, Europese Verkenning 5 (2007, p 110)

 

Innovation

·          Many startups do not make it in the Netherlands. With a survival rate after two years of 65-75% the Netherlands is in the tail of Europe.  Staat van Nederland Innovatieland; 2012. TNO & HCSS; pg 24

·          Tax deduction facilities innovation Press: www.forskningsradet.no/en/Newsarticle/Tax_deductions_promote_innovation/1253963202961 And Report: www.jotmi.org/index.php/GT/article/view/art165/583

·          nvestments in knowledge & innovation: almost half of the economical growth between 1995 and 2008 is the result of investments in knowledge and innovation. One third of that half results from public investments  , two thirds from private investments.  www.ezpress.eu/news/15132/Kennisinvesteringen_leiden_tot_hogere_groei and  www.innovatieplatform.nl/pers/persberichten2010/TCB_%20Study_%20Innovatieplatform.pdf

·          Management / ergonomics: working more smart brings in 9% (www.nu.nl/economie/2040975/slimmer-werken-loont.html)

·        Tax incentives (USA) Every tax relief dollar as an incentive on research and development, brings in $2,90 tax income on research (minimal).

Source: Information Technology and Innovation Foundation (ITIF), “The Research and Experimentation Tax Credit: A Critical Policy Tool for Boosting Research and Enhancing U.S. Economic Competitiveness”, Dr. Robert Atkinson (Sept. 4th, 2006

·        May 2006

Organisational Outcome

Innovative vs Non innovative organisations

Return on investment

27 % higher

Sales growt

19  % higher

Profit growth

10  % higher

Growth of market share

13  % higher

Customer satifaction

6  % higher

Source: Interface May 2006, p40; Social Innovation is crucial to future sccess… By Justin J.P. Jansen, Hek W. Volberda and Frans A. J. Van den Bosch

Data from the Dutch Competition and Innovation Monitor (Erasmus University Rottedam; www.eur.nl) 

 

Technological innovation

Social innovation

Technological knowledge

Managerial knowledge

R&D and ICT investments

Training and Experience

Research and development

Organisational, Management and Labor

Knowledge creation

Acquisition and application of new knowledge

¯

¯

25 % of the innovation success

75 % of the innovation success

Source: Interface May 2006, p40; Social Innovation is crucial to future sccess… By Justin J.P. Jansen, Hek W. Volberda and Frans A. J. Van den Bosch

Data from the Dutch Competition and Innovation Monitor (Erasmus University Rottedam; www.eur.nl)

·        Jan 2006. The ratio between the EIS (European Innovation Scoreboard) composite index for inputs (education, investment in innovation, etc) and outputs (firm turnover coming from new products, employment in high tech sectors, patents, etc) provides a measure of this relationship for national innovation systems. Table 2. Input, output and SII ranks

 

SE

CH

FI

DK

DE

AT

BE

UK

NL

FR

IS

LU

IE

NO

IT

EE

SI

HU

ES

CY

PT

LT

CZ

BG

PL

SK

EL

LV

RO

INPUT

1

3

2

5

7

9

6

8

11

12

4

18

17

10

20

13

16

19

22

14

21

15

27

23

25

28

26

24

29

OUTPUT

2

1

3

4

5

7

12

11

8

10

16

6

9

15

13

22

20

18

14

25

21

28

19

26

24

17

27

29

23

SII

1

2

3

4

5

6

7

9

8

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

Figure 7. Input and Output

The solid line shows the trend line between both indices.

Many countries have similar rankings on both Input and Output performance. The most noteworthy exceptions are Belgium , Iceland , Norway , Estonia , Cyprus , Lithuania and Latvia , which all rank much better on Inputs than on Outputs. Luxembourg , Ireland , Italy , Spain , Czech Republic , Slovakia and Romania all score much better on Outputs. These results should, however, be interpreted very carefully because many of the Output indicators measure intellectual property, where there is an enormous range in performance (see Figure 6).

Source: http://trendchart.cordis.lu/scoreboards/scoreboard2005/inoutput.cfm

·         “Each EUR 1 miljon subsidy at innovation leads to a EUR 22 miljon extra investments and a 100 extra ‘hoogwaardige’ jobs.” Source: Research of the ‘Technologiecentrum Noord-Nederland’ (see www.xs4all.nl/~tcnn/) cited in De Telegraaf November 23th, 2005

·        Effectiveness of fiscal deduction fees for starting entrepreneurs: every one euro deduction results in 0.5 to 0.8 euro extra R&D labour efforts. Source: Hoe effectief is extra fiscale stimulering van speur- en ontwikkelingswerk? M.F. Cornet, B.L.K. Vroomen (2005), CPB,doc. nr 103, The Hague

·        Estimation suggests that each 1 euro of fiscal measure for R&D (WBSO) allowance leads on the average to an extra expenditure on R&D of !.01 euro to 1.02 euro in the short to medium term. Source: WBSO nader beschouwd; E.Brouwer, P. den Hartog, A.P. Poot and J. Segers. Min EZ, onderzoeksreeks nr 4; 2002.

·        Innovation brings benefits: 1.5% increase of growth and turn over percentages, co operation too; 6% extra added value pro employee. Source: CBS, Kennis en economie 2001.

 

 

Knowledge & Knowledge Management

·        Added Value of R&D, Netherlands 2002: 445,160 mln Euro, investment 4,543 mln Euro. (2001, similar figures) Source: CBS, Kennis en economie 2001. pg 92

·        3/4 of the added value of can be ascribed to specific knowledge. Source: Brian Quinn; The Economist Nov.11, 1995 in Managing Knowledge: Building Blocks for Success, 1998, G. Probst, S. Raub, K. Rombart; in the Dutch edition of 2000, pg 12.

·        Nobelprijswinnaar Robert M. Solow kon in 1957 slechts 20 procent van de productiviteitsgroei verklaren met de productiefactoren arbeid en kapitaal. Algemeen geldt nu dat de overige 80 procent van de productiviteitsgroei wordt bepaald door de ontwikkeling en toepassing van kennis. De noties van een kenniseconomie en kennis als basis voor concurrentievoordeel zijn dan ook op het werk van Solow gebaseerd Source: Het Financieele Dagblad December 14, 2005; Stuur op kennis voor meer productiviteit MARC ZEGVELD

 

Labour market mismatches/costs

·        Mismatches on the labor market by level or specialisation costs approximately 2000 euros per full-time worker annually.” in www.roa.unimaas.nl/pdf_publications/2008/ROA_TR_2008_6.pdf  (It has also been published: Eijs, P. van, en Heijke, H., (2000), ‘Mismatch between occupation and education and the costs and benefits of job-related training’, in: Heijke, H., en Muysken, J. (Eds), ‘Education and training in a knowledge-based economy’, Houndmills/London/ New York: Macmillan, 159-189.

·        Gemiddeld genomen is er voor de afgestudeerde schoolverlaters van de hier weer gegeven richtingen een ‘wage penalty’ van ca. 8% als men buiten in plaats van binnen de richting werkzaam is (http://www.roa-maastricht.nl/cms/wp-content/pdf_publications/2013/ROA_R_2013_11.pdf; pg 98)

 

Malnourishment

·        * For each euro invested in treating malnoutrition there is a return of 2 to 4 euros as a result of less mortality and less hospitalisations. The totla societal cost of manoutrition is estimated to be about 1.8 billion Euros a year. In NL malnutrition is responsible for about 400 deaths a year. Source: www.seo.nl/pagina/article/ondervoeding-onderschat/

 

Migrations

·        In 2005 migrants sent ± 232 bln US dollar to their countries of origin; two thirds of which are developmental countries. This part almoste equals the total developmental budget for the countries; some 167 billion dollars. From the USA for example; 18 mln migrants sent 35 bln dollars home. Source: World Population Report 2006; UNFPA; www.unfpa.org

 

Patents

·        Licensing patents: Universities that help researchers to market their knowledge, receive an six fold return. This was discovered by the Milken Institute. Universities  earn $6 on licenses patents for each $1 capacity loss for their employee at the so called technology transfer offices. Source: www.scienceguide.nl/article.asp?articleid=101503  

·        …95 percent of all patents will never be exploitated." Source: De Tijd, 17 mei 2006. De iPod is geen technologisch hoogstandje', Fredeirk Tibau; interview met Richard Hawkins (Tijd Electronic Services NV)  (Canadian Richard Hawkins is an expert on innovation policy anc ICT)

 

Poverty Reduction

·        Researchers  from the World Bank reported ( www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2014/05/21/000158349_20140521143938/Rendered/PDF/WPS6886.pdf) recently that in 82 percent of the cases examined ( in Africa , Latin America and Asia), alcohol and tobacco consumption drops even if you give poor free money. Indeed, explored in Liberia ( www.poverty-action.org/project/0166 ) . Blattman what happens when you give $ 200 to the least accountable arms you 'll find anywhere : alcoholics, drug addicts and criminals in slums. Three years later revealed that they had spent their money on food , clothes, medicines and setting up new businesses. Source: https://decorrespondent.nl/1434/Moet-je-een-bedelaar-geld-geven-/101285074836-7b344876

 

 

Prevention

·        Natural disaster: every dollar preventive help saves four dollars in dealing with the consequences (www.icrc.org, World Disaster Report June 16th, 2009)

 

Productivity

·        Studies using 400 Dutch companies and 3000 Italian companies show that 'flexible' companies with lots of temporary contracts with much inflow and outflow and low wages, do not enlarge market shares. (Studies onder vierhonderd Nederlandse bedrijven en drieduizend Italiaanse tonen aan dat bij "flexibele" bedrijven de vele tijdelijke contracten met veel in- en uitstroom en lagere lonen zich niet vertalen in winst van marktaandeel.) Prof. A. Kleinknecht in Uit Delft, nr. 12, mei 2010, pg 15Pg 15

·        ../1/2011 Larger part-time employment share leads to greater firm productivity. IN: Is Part-Time Employment Beneficial for Firm Productivity? Source: www.roa.unimaas.nl/pdf_publications/2011/ROA_RM_2011_2.pdf

·        Dutch labour productivity pro hour is high within an international perspective. The Average Added Value in the Netherlanths is some 5% higher than in the USA, and some 15% higher than the average in the EU-15.  ……..  This difference in labour productivity between the Netherlands and the EU has been more or less constant through the last 30 years.  Source: Vier vergezichten op Nederland – Productiviteit, arbeid en sectorstructuur in vier scenario’s tot 2040. Persbericht 26 nov. 2004. http://www.cpb.nl/nl/news/2004_50.html

·        Case study at 3M: 7% of total turnover was spent at R&D (which is twice the customary average of enterprises in the USA), 6% of the year’s turnover came from products, developed in that same year. 30% of the turnover came from products that where developed within the 4 years. In 1994, 3M acquired 524 patents.   Source: Managing Knowledge: Building Blocks for Success, 1998, G. Probst, S. Raub, K. Rombart; in the Dutch edition of 2000, pg 41.

·        In the midst of the Nineties in Australia, researchers' salaries and universities' finances were linked to their numbers of publications in peer-reviewed magazines. This resulted is a drastic increase in the number of articles but the quality -as measured by citations- decreased even below the OECD's average. (Evaluitis, by Margit Osterloh & Bruno S Frey, in If you are so smart, why aren't you rich? by Chris Lorentz 2008; p237)

 

Public Health

·        10/10/2012 Als het ziekteverzuim door duurzaam werken met 1% daalt, scheelt dat alle Nederlandse werkgevers samen jaarlijks 2,6 miljard Euro in kosten. Per werknemer komt dit neer op een bedrag van ongeveer 400 Euro per jaar. Dit blijkt uit een doorrekening van CapGemini in opdracht van het ministerie van SZW. Gezonde werknemers zorgen ook voor een hogere productiviteit, als die door duurzaam werken met 1% toeneemt, dan levert dat jaarlijks 6 miljard Euro op. Voor een bedrijf met 100 werknemers komt dit neer op een omzetstijging van 95.000 Euro per jaar. www.rijksoverheid.nl/nieuws/2012/10/10/verbetering-gezondheid-werknemers-levert-2-6-miljard-euro-op-voor-het-bedrijfsleven.html

·        Accident Prevention / at work and home

-         http://www.nu.nl/news/730986/30/Minder_ongevallen_op_het_werk.html

·        Physical exercise

-         American researchers calculated; if all 300 million Americans between 10 and 74 would not use  a car and walk 30 minutes instead, that would cut CO2 emissions by 64 million tons, 30 billion litres of car fuel and they would lose 1.5 billion kilograms of body fat. VK 17/11/2007

-         Review article on some 100 articles on effects of pysical exercise  www.sciencedaily.com/releases/1999/02/990223082050.htm

 

Recreation

Housing

·        ...confirmed that seasonal houses used permanently contribute 16 times as much to the local economy (included tourist and recreational sector), than non permanent and non commercial occupation. Source: Landbouwkundige toekomstvoorspellingen: de Veenkoloniën in 2020 en 2050 : een onderlegger voor de ontwerpopdracht van Stichting Innovatie Veenkoloniën http://ideas.repec.org/p/dgr/rugurs/2003301.html

·         

 

R&D

·        6/10/2010 A new study has shown that meeting the Europe 2020 target of increasing R&D investment to 3pc of GDP could create 3.7m jobs and increase annual GDP by up to 795bln Euro by 2025. www.businessandleadership.com/news/article/25909/leadership/european-innovation-initiative-launched

·        Iedere euro die in de industrie aan R&D wordt besteed, levert er ruim drie op. In de biotechnologie ligt die 'hefboom' veel lager met een opbrengst van Euro 1,10. Bron: 18/8/2008 www.staatscourant.nl/staatscourant/nieuwsbericht.asp?ID=15370  

·        Figure 2 shows a positive, curvilinear relationship between research wealth and economic wealth. (pg 313) The top 8 countries (of 31 analysed of world’s 193) in the science citation rank, produce about 84,4% of the top 1% citations. The 31 produce 97.5% of the world’s most cited papers. (pg 314)  Source: The scientific impact of nations, David King, Nature July 15th, 2004; pg 313

·        R&D is attributed 10% of growth in Canada, 11.6% in France, 15.5 In West-Germany (pre 1990), 15.8% in Italy, 14.2% in Japan, 8.3% in the UK, and 9.9% in the US.    Source: Technical Progress and its Impact on Growth: Sources of Evidence, Dimitria Kyriakou, IPTS, No 82 –JRC Sevilla, March 2002 (pg 27-30)

·        An increase of R&D budgets by 1 billion Euro results in an increase of the GDP by 50 million Euro (0.013% GDP). CPB Memorandum  nr. 24, 10 jan 2004Eric Canton; Onderwijs, R&D en economische groei; p27.

·        Contribution to the Gross Domestic Problem of knowledge institutes, universities and enterprises respectively 0.35%, 0.53% and <pm>. Source: CBS, Kennis en economie 2001.

·        .. The results of the analysis are summarised below. All results are averages over countries and time: little can be said about the results for specific countries or periods.

-         Effects of business R&D on productivity. On average, a 1% increase in business R&D coincided with  a 0.13% increase in MFP. The effect increased after 1980 and was larger in more R&D-intensive countries. The effects of R&D on MFP was lower where the share of government funding was larger, most likely because government expenditures and defence R&D made a smaller contribution to MFP

-         Effects of foreign R&D on productivityA 1% increase in foreign R&D coinceded with a 0.44% increase in MFP. The effect was essentially stable since 1980 and was larger in R&D-intensive countries., suggesting that the size of the domestic R&D base influences the rate of technology adoption from abroad. The impact was somewhat larger the smaller the size f an economy.

-         Effects of public R&D on productivity A 1% increase in public R&D coincided with a 0.17% increase in MFP. The effect decreased after 1980 and was larger in countries in which the share of universities (as opposed to government labs) was higher. The effect was also larger in countries with lower shares of defence R&D and higher levels of R&D intensity.

These statistics measure the effect of R&D on MFP only –not on total GDP. Hence, they capture the spill over effects of private, public and foreign R&D rather than the total effect. This is specially important in interpreting the results for interprettnig the results of business R&D investments.

Source; EG Science, Technology and Industry Outlook Special Edition Drivers of growth: information technology, innovationa and entrepreneurship, science and innovation  http://www1.oecd.org/publications/e-book/9201131e.pdf  Pg 55 Box 4.1.  (EU 16; 2001)  Note:  MFP = Multi Factor Productivity

·        Project teams working together longer on research projects than 5 years reduce their communication with the outside world and achieve worse results than before. (In Investigating the Not Invented here Syndrome: a Look at the Performance, Tenure and Communication Patterns of 50 R&D Project Groups, Katz & Allen, R&D Management, 1982, #1: pg. 7-19) Source: Managing Knowledge: Building Blocks for Success, 1998, G. Probst, S. Raub, K. Rombart; in the Dutch edition of 2000, pg 279.

·        In research labs more info is gained from going through scientific articles of others than form own work. At page 130 of Bounded rationality & Organisational Learning; organisation science. 1990, 2(1): 125-140) Source: Managing Knowledge: Building Blocks for Success, 1998, G. Probst, S. Raub, K. Rombart; in the Dutch edition of 2000, pg 279.

·        ..a recent study, for example, showed that for each extra per cent invested in public R&D, there is an extra 0.17 per cent growth in productivity.

Source: PressL CORDIS  Commission explains why Europe needs research [Date: 2005-06-10] RCN: 23959   http://dbs.cordis.lu/fep-cgi/srchidadb?ACTION=D&SESSION=164112005-9-12&DOC=44&TBL=EN_NEWS&RCN=EN_RCN_ID:23959&CALLER=FP7_NEWS

·        Nov. 2005: Wetenschaps- en technologie- Indicatoren 2005; NOWT (Science and Technology Indicators 2005; p8 With 0.25% of the world popupation, the Netherlands produces 2.5% (p66; 20,000) of all academic articles worldwide and recieves 3.5% of all citations. p9 The total Dutch R&D effort cost 8.3 billion euro in 2003, 1.76% of its GDP. p30 4.8 billion euro of which is SME money. p26 R&D at universities is financed mainly by thegovernment (90%). p67 NL by impact 3th after Switzerland and the USA..

 

 

Science Centres

·        www.aspacnet.org/apec/history.html Report on economical impact of SCs (Feb. 2005)

 

 

Technical Progress

·        Technical progress on the other hand is still considered to be responsible for a very large share of growth (between 36.9% in the US to 53% in Italy)  Source: Technical Progress and its Impact on Growth: Sources of Evidence, Dimitria Kyriakou, IPTS, No 82 –JRC Sevilla, March 2002 (pg 27-30)

·        Investing in inventions (patents) is rewarding. A graph shows that companies with patents that were cited most often in articles and had other patents that lead readily to consumer products, performed through the years (exponentially) better than the R&D 500.  Source: Technology Review Okt.2004, pg 53. (www.technologyreview.nl)

 

 

Wage cuts

·        www.managersonline.nl/nieuws/8586/prestatiebeloning-verslechtert-prestaties.html

·        http://docs.szw.nl/pdf/35/2001/35_2001_3_1955.pdf

 

 

Miscellaneous

·        22/12/2010 www.nu.nl/economie/2408227/vrijwilligerswerk-miljarden-waard.html

·        Figure C shows Performance vs. Investment of the Member States in 1999. The relationship is not quantified, as a correlation the value would approximate 0.25. Source Key Figures 2002: An Overview of Europe’s Investment and Performance in the Knowledge-Based Economy (pg 9-13; in particular 12-13)

·        Three out of four reorganisations fail  www.nu.nl/news/1788647/32/Miljarden_verspild_aan_mislukte_reorganisaties.html 

 

 

 

 

Comment

 

The sources cited are all in the arts domains of societal studies and humanities. There is a great interest in solid facts and figures regarding multipliers, drivers, return of investments in education, research, etcetera. Unlike the sciences, humanities and socials studies lack the simplicity and convenience of never changing unequivocal formula’s, laws, constants, calculations and demonstrated, decisive ‘proof’.

 

Within the arts however, everything is questioned and criticized perpetually; each concept, ‘law’, variable, formula etc. Its subject (“reality”) changes continuously. Trying to walk quicksand comes closest to the job; going down is the certainty, when and how the challenge ;-)

 

Thus some words of caution:

-         the experts justly say that the methodological problems regarding international & this type of comparisons are so numerous and complex that blissful ignorance should be avoided;

-         the lists above are not to be considered exhaustive, there will be new entries in the due time.

 

So back to the specific cited relationships. Each can only be considered indicative. Having some more observations/studies on each relationship allows some certainty towards a ‘true value’ (to put a foot down on the quicksand). But…..!  Whatever the degree of certainty and confidence, in a real life society there are numerous factors and influences messing up any ‘established relationship’ anytime.

 

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