Measurement of R&;D Multipliers: The Case of Greece

The present paper applies empirically the methodology of backward and forward R & D multipliers for the case of Greece, which, despite its high growth rates in output (G.D.P.), ranks last among European Union (E.U) countries in R&D expenditure. The backward R&D multipliers measure the total amount of R&D expenditure embodied in one unit of an industrys final demand. On the other hand, forward multipliers reflect the percentage of an industrys R&D expenditures that is embodied in the final output categories. The results show that the Greek economy experiences a decrease in backward R&D multipliers over the time period 1993–1997, and some policy implications are discussed, regarding the countrys priority to increase R&D diffusion and stimulate R&D financing.