Absorptive Capacity and Frontier Technology: Evidence from OECD Manufacturing Industries

Philip Stevens ()
Authors registered in the RePEc Author Service: Richard Anthony Kneller

No 202, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

Abstract: This paper investigates whether differences in absorptive capacity help to explain cross-country differences in the level of productivity. We utilise stochastic frontier analysis to investigate two potential sources of this inefficiency: differences in human capital and R&D for nine industries in twelve OECD countries over the period 1973-92. We find that inefficiency in production does indeed exist and it depends upon the level of human capital of the country's workforce. Evidence that the amount of R&D an industry undertakes is also important is less robust.

Date: 2002-10
New Economics Papers: this item is included in nep-mac
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Working Paper: Absorptive Capacity and Frontier Technology: Evidence from OECD Manufacturing Industries (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:202

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