Accounting for Research and Productivity Growth Across Industries

L. Rachel Ngai and Roberto Samaniego ()

Review of Economic Dynamics, 2011, vol. 14, issue 3, 475-495

Abstract: What factors underlie industry differences in research intensity and productivity growth? We develop a multi-sector endogenous growth model allowing for industry-specific parameters in the production functions for output and knowledge, and in consumer preferences. We find that long run industry differences in both productivity growth and R&D intensity mainly reflect differences in "technological opportunities", interpreted as the parameters of knowledge production. These include the capital intensity of R&D, knowledge spillovers, and diminishing returns to R&D. To investigate the quantitative importance of these factors, we calibrate the model using US industry data. We find that diminishing returns to research activity is the dominant factor. (Copyright: Elsevier)

Keywords: Multi-sector growth; Total factor productivity; R&D intensity; Technological opportunity (search for similar items in EconPapers)
JEL-codes: D24 O30 O41 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (31)

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DOI: 10.1016/j.red.2009.12.002

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