Modelling the Connections in the Cross Section between Technical Progress and R&D Intensity

Richard Nelson

RAND Journal of Economics, 1988, vol. 19, issue 3, 478-485

Abstract: This article is concerned with explaining the observed positive relationship in a cross section of industries between technical advance and R&D intensity. It presents a set of models to explore how technological opportunity and appropriability affect both of these variables. The models suggest that the key factors explaining the relationship are differences across industries in technological opportunity. Differences in appropriability make the relationship noisy.

Date: 1988
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