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Running Head: ECONOMICS1EconomicsName of StudentInstitutional affiliationDateECONOMICS2Research and developmentInvested Research and development is essential for economic growth. Research anddevelopment promote skill development which is paramount for high wages and provides acompetitive advantage in the international markets. Investing in Research and developmentcreates new markets and bridging the wage gaps as they offer jobs to both skilled and unskilledemployees. The United States can invest in R&D as a method of finding cheap energy sourcesfor creating new global markets and improving the global economy. R&D positively impacts anation through the development of new knowledge which results in new markets and new jobopportunities. Hence, it essential as it creates markets required for bridging the wage gaps andhelps in increasing the global economy (Blanco, Gu, & Prieger, 2016).The United States has experienced a significant effect on its factor productivity byinvesting in Research and Development. The USA private sector from 1963 to 2007 as shown anelasticity estimated at 0.056-0.143. And the returns to the state GDP from Research anddevelopment are ...


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