The role of research in the process of economic development has been proved to be very effective and investment on research has varying effects on economic variables including value added and productivity. These impacts are of importance in industry & mine. In this paper several hypotheses are tested with the aid of various models such as Johnson & Striner, Zakazit, cobb doglas- transendental and linear models. Among them cobb doglas model has proved to be best model implying that:
1- One percent increase in per capita research expenditures in industry sectors increases per capita value added around 0/041 percent after one year.
2- The effect of physical investment of industry & mine sectors on per capita production (average per capita value added ) in these sectors is higher than research expenditure.
This paper contains several parts: The first part refers to literature of the subject and examines the relevant indexes of Iran.Then it examines the trend of industrial research expenditures in Iran and some other countries and it tests relation between research expenditures and value added in industries and mines sectors. Finally it explains the problems in these sectors and provides needed proposals.