The relationship between interstate variations in the growth of R&D and economic activity

The relationship between regional R&D growth and subsequent regional economic growth is analyzed empirically. The rates of growth from 1920 to 1964 are calculated for various economic variables and R&D in the 48 contiguous states. The correlation coefficients of the growth equations measure consistency in growth. These coefficients are then analyzed via a correlation procedure. The results suggest that regions enjoying the most consistent rates of growth in R&D activity will subsequently enjoy, if not the most rapid economic growth, the smoothest and most consistent pattern of future economic growth.