Recent studies have shown increasing interest on the relationship between research output and
economic growth. The study of such a relationship is not only of theoretical interest, but it can
also influence specific policies to improve the quality, and probably the quantity of research
output. This paper has studied this relationship in G7 countries using the asymmetric panel
causality test of Hatemi-J (2011). Our results show that only the United Kingdom shows a causal
relationship from the output of research to real GDP. However, when the signs of variations are
taken into account, there is an asymmetric causality running from negative research output
shocks to negative real GDP shocks.