A Schumpeter-Inspired Approach to the Construction of R&D Capital Stocks
Jürgen Bitzer () and
Andreas Stephan ()
No 300, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research
A new method for constructing R&D capital stocks is proposed. Following Schumpeter, the development of R&D capital stocks is modelled as a process of creative destruction. Newly generated knowledge is assumed not only to add to the existing R&D capital stocks but also, by displacing old knowledge, to destroy part of that capital. This is in stark contrast to the perpetual inventory method, which postulates a constant rate of depreciation. We compare both methods by estimating the impact of R&D and spillovers on output in OECD countries, and find that the new approach leads to more sensible and robust results.
Keywords: R&D capital stocks; knowledge spillovers; creative destruction (search for similar items in EconPapers)
JEL-codes: C82 O31 D62 (search for similar items in EconPapers)
Pages: 19 p.
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Journal Article: A Schumpeter-inspired approach to the construction of R&D capital stocks (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwwpp:dp300
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