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Productivity, trade and the R&D content of intermediate inputs

Shuichiro Nishioka () and Marla Ripoll ()

No 10-07, Working Papers from Department of Economics, West Virginia University

Abstract: This paper explores a novel way to evaluate the extent to which R&D knowledge embodied in intermediate inputs correlates with productivity at the industry level. We propose the concept of R&D content of intermediates, which represents the R&D stock embodied in intermediate goods used in production. This concept parallels that of factor content of trade, and it requires the use of a global input-output matrix that speci.es all industries and countries involved in the intermediate purchases. Using a sample of 32 countries and 13 manufacturing industries we compute the elasticity of industry-level TFP with respect to the R&D content of intermediates. We find that among high-R&D industries, the R&D embodied in foreign inputs purchased from the own industry is significantly associated with industry-level TFP. In contrast, intermediate input trade does not appear to be a significant channel of R&D diffusion among low-R&D industries.

Keywords: international transfer of technology; intermediate inputs trade; R&D stock; industry-level TFP (search for similar items in EconPapers)
JEL-codes: F14 O33 O5 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2011
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http://be.wvu.edu/phd_economics/pdf/11-07.pdf First version, 2011 (application/pdf)

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Journal Article: Productivity, trade and the R&D content of intermediate inputs (2012) Downloads
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