Journal Article

Supply chain constraints and research spending: An international investigation


  • Dohse
  • D.
  • Goel
  • R.
  • Saunoris
  • J.
Publication Date

Supply chain issues have garnered considerable attention during recent years, especially with the advent of the COVID-19 pandemic. Whereas many causes and effects of supply chain have been studied, this paper focuses on an aspect that has largely been ignored – the effects of supply chain constraints on research and development (R&D) spending. Using cross-country data from numerous countries over the past decade, we find support for our main hypothesis that supply chain constraints undermine R&D spending. However, different dimensions of the supply chain have quantitatively different effects on research spending. Interestingly, we find evidence of the legacy of supply chain issues from pre-pandemic days to impact more recent R&D spending. Finally, the main findings are robust to consideration of reverse causality issues. Implications for technology policy are discussed.

Kiel Institute Experts


JEL Classification
O32, H54, I18, F6

Key Words

  • R&D
  • supply chain
  • infrastructure
  • supply logistics
  • pandemic
  • globalization