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Heterogeneous ideas production and endogenous growth: an empirical investigation

Kul Luintel () and Mosahid Khan

Canadian Journal of Economics, 2009, vol. 42, issue 3, 1176-1205

Abstract: We examine the dynamics of ideas production and knowledge-productivity relationship in a panel of 19 OECD countries. A new data set of triadic patents is used. We rigorously address the issues of cross-country heterogeneity and endogeneity. Domestic and foreign ideas stocks exert positive but heterogeneous effects on ideas production. We find evidence of duplicate R&D but little support for endogenous growth. Countries with low domestic ideas bases could considerably improve productivity through ideas accumulation; however, this effect is modest for countries with sizeable ideas bases. An implication is that country-specific R&D policy appears potentially more effective than the one-size-fits-all approach.

JEL-codes: C15 F12 F2 O3 O4 (search for similar items in EconPapers)
Date: 2009
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