for Basic Research – Economic Might and the of History*

eScholarship provides open access, scholarly publishing services to the University of California and delivers a dynamic research platform to scholars worldwide. Abstract: This paper studies the impact of global factors on patterns of basic research across countries and time. We rely on the records of major scientific awards, and on data dealing with global economic and historical trends. Specifically, we investigate the degree to which scale or threshold effects account for countries share of major prizes [Nobel, Fields, Kyoto and Wolf]. We construct a stylized model, predicting that lagged relative GDP of a country relative to the GDP of all countries engaging in basic research is an important explanatory variable of country’s share of prizes. Scale effects imply that the association between the GDP share of a country and its prize share tends to be logistic -- above a threshold, there is a “take off” range, where the prize share increases at an accelerating rate with the relative GDP share of the country, until it reaches “maturity” stage. Our empirical analysis confirms the importance of lagged relative GDP in accounting for countries’ prize shares, and the presence of "winner takes all" scale effect benefiting the leader. Using measures of casualties during the wars, we find that the only significant effect can be found for a lag of 3 decades – i.e., deaths in the war negatively impact the viability of basic research about 30 years after the fact. With more recent data, we document the growing importance of countries that used to be at the periphery of global research, possibly advancing towards the take off stage. Abstract This paper studies the impact of global factors on patterns of basic research across countries and time. We rely on the records of major scientific awards, and on data dealing with global economic and historical trends. Specifically, we investigate the degree to which scale or threshold effects account for countries share of major prizes [Nobel, Fields, Kyoto and Wolf]. We construct a stylized model, predicting that lagged relative GDP of a country relative to the GDP of all countries engaging in basic research is an important explanatory variable of country’s share of prizes. Scale effects imply that the association between the GDP share of a country and its prize share tends to be logistic -- above a threshold, there is a “take off” range, where the prize share increases at an accelerating rate with the relative GDP share of the country, until it reaches “maturity” stage. Our empirical analysis confirms the importance of lagged relative GDP in accounting for countries’ prize shares, and the presence of "winner takes all" scale effect benefiting the leader. Using measures of casualties during the wars, we find that the only significant effect can be found for a lag of 3 decades – i.e., deaths in the war negatively impact the viability of basic research about 30 years after the fact. With more recent data, we document the growing importance of countries that used to be at the periphery of global research, possibly advancing towards the take off stage. This paper studies the impact of global factors on patterns of basic research across countries and time. Understanding creativity and path breaking scientific research remains a black box. Short of having detailed information on networks of scientific research, and the effort associated with these networks, we rely on the records of major scientific awards, and on data dealing with global economic and historical trends. Specifically, the cumulative record of major prizes includes more than a hundred years of Nobel laureates in Chemistry, Medicine and Physics; as well as the shorter but significant record of the Fields Medal, Kyoto and Wolf prizes for basic research. We use this information to study the degree to which scale or threshold effects account for countries share of major prizes.