Abstract

This study examined the relationship between public research and development (R&D) investment and agricultural productivity growth in Chile during the 1964-2017 period. To achieve this objective, we used a combined approach based on accounting and econometric measures. The results indicated that agricultural productivity grew at an annual average rate of 2.11%. Additionally, the empirical findings show a positive and significant relationship between public R&D investment and agricultural productivity. Furthermore, the cost-benefit analysis reveals a high return (15%-21%) to public R&D resources, which may have contributed to enhancing the productivity performance of Chile's agricultural sector. In this regard, our findings suggest that agricultural R&D spending has been profitable in recent decades and that a higher allocation of R&D resources is justifiable.