A0927
Title: Impact-based budgeting model and the simulation to target sectoral marginal impacts of R\&D investment
Authors: Komsan Suriya - Thailand Science Research and Innovation (Thailand) [presenting]
Abstract: This model investigates the impacts of R\&D investment on sectoral economic growth and GDP growth with the evaluation of targeted marginal impacts of R\&D investment in each economic sector. The simulation technique is applied to solve the model. The model begins with the production function and value of production whose factors of production include capital, labor, intermediate factors, estates and terrains and ecological system and climate. It treats the adjustment factor to translate the impacts of R\&D investment and R\&D related components on the economic growth. In this adjustment factor, R\&D investment directly impacts the economy through the advancement of science and technology per se and induces the higher productivities of skilled researchers, unskilled researchers, research facilities and research utilization. Once the ratio of R\&D investment in the next period over this period is identified with all other well-simulated variables, adjustment parameters and amplifier parameters, the model presents the results of sectoral growth and overall economic growth. The marginal impact of R\&D investment in each sector can be directly calculated by the differences between the value of production in the situations with and without R\&D investment. The simulated impacts point to the targeted economic growth in each sector which contribute to the targeted GDP growth. The findings of the model yield the targeted marginal impacts of R\&D investment in each economic sector.
