R&D and productivity in OECD firms and industries: a hierarchical meta-regression analysis

Mehmet Ugur (), Eshref Trushin, Edna Solomon and Francesco Guidi

No 15854, Greenwich Papers in Political Economy from University of Greenwich, Greenwich Political Economy Research Centre

Abstract: The relationship between R&D investment and firm/industry productivity has been investigated widely following seminal contributions by Zvi Griliches and others from late 1970s onwards. We aim to providea systematic synthesis of the evidence, using 1253 estimates from 65 primary studies that adopt the so-called primal approach. In line with prior reviews, we report that the average elasticity and rate-of-return estimates are positive. In contrast to prior reviews, however, we report that: (i) the estimates are smaller and more heterogeneous than what has been reported before; (ii) residual heterogeneity remains high among firm-level estimates even after controlling for moderating factors; (iii) firm-level rates of return and within-industry social returns to R&D are small and do not differ significantly despite theoretical predictions of higher social returns; and (iv) the informational content of both elasticity and rate-of-return estimates needs to be interpreted cautiously. We conclude by highlighting the implications of these findings for future research and evidence-based policy.

Keywords: R&D; Knowledge capital; Productivity; Meta-analysis (search for similar items in EconPapers)
JEL-codes: C49 C80 D24 O30 O32 (search for similar items in EconPapers)
Date: 2016-08-16
New Economics Papers: this item is included in nep-eff, nep-ino, nep-sbm and nep-tid
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Citations: View citations in EconPapers (57)

Published in Research Policy 10.45(2016): pp. 2069-2086

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http://gala.gre.ac.uk/id/eprint/15854/7/15854_Solo ... F%20OA%29%202016.pdf

Related works:
Journal Article: R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis (2016)
Working Paper: R&D and productivity in OECD firms and industries: a hierarchical meta-regression analysis (2015)
Working Paper: R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis (2015)
Working Paper: R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis (2015)
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