*Project Delivery and Support Specialist, UNDP, Lesotho
**Senior Lecturer, Department of Economics, National University of Lesotho, Roma, Southern Africa
***Ph.D Student, School of Economics, University of Cape Town, South Africa
R&D is regarded as one of the drivers of economic growth. History has shown that countries with high R&D and Innovation have the most successful economic growth and development. The study investigated whether there exists a long run relationship between economic growth, R&D and Innovation in South Africa using Co-integration through Johansson approach and Error Correction Model. It further estimated the impact of R&D and Innovation to economic growth, and the elasticity of economic growth to R&D and Innovation. The short run methodology employed to calculate the impact of R&D and Innovation to economic growth and the elasticity of GDP to science and technology has been adopted from United States Congressional Office Bureau, USCBO (2005). The findings indicated that there exists a significant long run relationship between R&D, innovation and economic growth. The study also found a positive impact of R&D and Innovation to economic growth.
R&D, Economic Growth, Innovation
