Walwyn, David Richard2011-06-082011-06-082010-06Walwyn, DR 2010, 'Determining research and development expenditure targets based on an affordability index', International Journal of Innovation and Technology Management, vol. 7, no. 2, pp. 183-191. [http://www.worldscinet.com/ijitm/]0219-87701793-6950 (online)10.1142/S0219877010001908http://hdl.handle.net/2263/16714Gross domestic expenditure on research and development (GERD), usually expressed as a percentage of gross domestic product (GDP), is a widely used indicator to reflect the research intensity within a national economy, and hence its capacity to develop new and innovative products or services. It is also used as a key target in the management of national innovation systems. For instance, the South African National Research and Development Strategy set a target of raising GERD/GDP to ‘somewhat over 1%’, and in 2002 the Barcelona European Council set an EU target of 3%. Despite its widespread usage, there is little discussion or agreement on how this target should be derived within a broad range of economic contexts and levels of affordability. In this paper, a composite indicator based on GERD/GDP, normalised for GDP per capita, is developed and its use in a number of countries explored and explained. As a result, a set of GERD/GDP targets for various categories of developing countries is proposed.en© 2011 World Scientific Publishing Co. All rights reserved.Gross domestic expenditure on research and development (GERD)Research and development (R&D)IndicatorsDeveloping countriesInvestment targetGross domestic product (GDP)Research and development projects -- Developing countriesEconomic development projects -- Developing countries -- FinanceDeveloping countries -- Economic conditionsPostprint Article