R&D and Productivity: A Two Way Avenue?

Claudio Bravo-Ortega and Álvaro García Marín
Authors registered in the RePEc Author Service: Alvaro F. Garcia-Marin

World Development, 2011, vol. 39, issue 7, 1090-1107

Abstract: Summary Most of the empirical studies assessing the R&D-productivity relationship at the country level fail to consider the possible simultaneity of these variables. Using a 65-country panel for the period between 1965 and 2005, this paper studies the relationship between R&D and productivity using several R&D indicators. We establish that per capita R&D expenditure is strongly exogenous to productivity. This result allows us to develop a further argument that demonstrates the high social returns to R&D spending. Our estimates also indicate that a 10% increase in R&D per capita generates an average increase of about 1.6% in the long-run TFP.

Keywords: innovation; productivity; endogeneity; economic; growth; country; panel (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

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