R&D-Productivity Dynamics: Causality, Lags, and "Dry Holes"
Journal of Applied Economics, 2002, vol. 5, 123-156
We study four issues in R&DÂ–productivity dynamics: does R&D Granger cause productivity, is there a lag between R&D and its productivity effects, does the potency of R&D vary in timing and magnitude, and what is the role of R&D spillovers and aggregate shocks. The results suggest that R&D causes productivity but not vice versa, productivity responds to changes in R&D with a considerable lag, the potency of R&D varies in timing and magnitude, and that the elasticity of productivity with respect to aggregate shocks is high, but negligible with respect to R&D spillovers.
Keywords: total factor productivity; TFP; R&D; causality; lag structure (search for similar items in EconPapers)
JEL-codes: C23 D24 O30 O40 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:cem:jaecon:v:5:y:2002:n:1:p:123-156
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