2007 R&D Satellite Account Methodologies: R&D Capital Stocks and Net Rates of Return

This paper discusses the methodologies used in constructing current- and constant-cost R&D net stocks and depreciation flows in the 2007 R&D Satellite Account. It also constructs net rates of return on private assets inclusive of R&D in a manner consistent with recent issues of the Survey of Current Business, and it discusses how such net rates might be constructed to be consistent with the user-cost of production economics.