Abstract
Many writers have claimed that research and development (R&D) has two faces. In addition to the conventional role of stimulating innovation, R&D enhances technology transfer (absorptive capacity). We explore this idea empirically using a panel of industries across twelve OECD countries. We find R&D to be statistically and economically important in both technological catch-up and innovation. Human capital also plays an major role in productivity growth, but we only find a small effect of trade. In failing to take account of R&D-based absorptive capacity, existing U.S.-based studies may underestimate the return to R&D.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 883-895 |
| Number of pages | 13 |
| Journal | Review of Economics and Statistics |
| Volume | 86 |
| Issue number | 4 |
| DOIs | |
| State | Published - Nov 2004 |
| Externally published | Yes |
All Science Journal Classification (ASJC) codes
- Social Sciences (miscellaneous)
- Economics and Econometrics