The Review of Economics and Statistics Vol. 86 No. 4 2004
Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries
Abstract
Many writers have claimed that research and development (R&D) has two faces. In addition to the conventional role of stimulating innovation, R&D enhances technology transfer (absorptive capacity). We explore this idea empirically using a panel of industries across twelve OECD countries. We find R&D to be statistically and economically important in both technological catch-up and innovation. Human capital also plays an major role in productivity growth, but we only find a small effect of trade. In failing to take account of R&D-based absorptive capacity, existing U.S.-based studies may underestimate the return to R&D.
- DOI
- 10.1162/0034653043125194
- Volume
- 86
- Issue
- 4
- Pages
- 883-895
- Language
- en
- Sources
- openalex crossref