RD in macroeconomic policy models

This report presents an overview of the activity in Europe concerning the inclusion of research and development (R&D) activity in macroeconomic models used for policy evaluation.

The Ministry of Higher Education and Science in Denmark systematically works with documenting realized (ex post assessment) and potential (macro) effects (ex ante assessment) of R&D and innovation policies. So far, the ministry has primarily focused on ex post assessment of economic effects at the firm or individual level using statistical methods (econometrics) with only little emphasis on ex ante macroeconomic effects.

Therefore, the ministry has initiated work to explore the possibilities for ex ante macroeconomic assessment of Danish R&D and innovation policy using available macroeconomic models or extending relevant available models.