Technological convergence, R&D, trade and productivity growth

Gavin Cameron; James Proudman; Stephen Redding

doi:10.1016/S0014-2921(03)00070-9

Technological convergence, R&D, trade and productivity growth

Gavin Cameron
, James Proudman
, Stephen Redding

Research output: Contribution to journal › Article › peer-review

211 Scopus citations

Abstract

This paper analyses productivity growth in a panel of 14 United Kingdom manufacturing industries since 1970. Innovation and technology transfer provide two potential sources of productivity growth for a country behind the technological frontier. We examine the roles played by research and development (R&D), international trade, and human capital in stimulating each source of productivity growth. Technology transfer is statistically significant and quantitatively important. While R&D raises rates of innovation, international trade enhances the speed of technology transfer. Human capital primarily affects output through private rates of return (captured in our index of labour quality) rather than measured TFP.

Original language	English (US)
Pages (from-to)	775-807
Number of pages	33
Journal	European Economic Review
Volume	49
Issue number	3
DOIs	https://doi.org/10.1016/S0014-2921(03)00070-9
State	Published - Apr 2005
Externally published	Yes

All Science Journal Classification (ASJC) codes

Finance
Economics and Econometrics

Keywords

Economic growth
International trade
Research and development (R&D)
Total factor productivity (TFP)

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10.1016/S0014-2921(03)00070-9

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title = "Technological convergence, R\&D, trade and productivity growth",

abstract = "This paper analyses productivity growth in a panel of 14 United Kingdom manufacturing industries since 1970. Innovation and technology transfer provide two potential sources of productivity growth for a country behind the technological frontier. We examine the roles played by research and development (R\&D), international trade, and human capital in stimulating each source of productivity growth. Technology transfer is statistically significant and quantitatively important. While R\&D raises rates of innovation, international trade enhances the speed of technology transfer. Human capital primarily affects output through private rates of return (captured in our index of labour quality) rather than measured TFP.",

keywords = "Economic growth, International trade, Research and development (R\&D), Total factor productivity (TFP)",

author = "Gavin Cameron and James Proudman and Stephen Redding",

note = "Funding Information: The views expressed are those of the authors and do not necessarily reflect those of the Bank of England. This work was funded by the Bank of England. Cameron's research was additionally funded by the ESRC (grant no. R000234954) and Redding's by the ESRC-funded Centre for Economic Performance at the London School of Economics. We are especially grateful to the editor, three anonymous referees, Philippe Aghion, Steve Bond, Rachel Griffith, John Muellbauer, Steve Nickell, and John Van Reenen for helpful comments and suggestions. We are also grateful to Andrew Bernard, Lee Branstetter, Jonathan Haskel, Nigel Jenkinson, Wolfgang Keller, Mervyn King, Danny Quah, Jon Temple, Peter Westaway, and participants in seminars at the Bank of England, European Economic Association Conference, European Science Foundation Conference on Growth in Open and Closed Economies, Oxford, and Royal Economic Society Conference for their comments and suggestions. We would like to thank Jeff Golland, and Louise Kay at the ONS for their help with the production data, John Van Reenen for supplying us with production/non-production workers data, as well as Martin Stewart and Maria Gutierrez-Domenech for excellent research assistance. The usual disclaimer applies. ",

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doi = "10.1016/S0014-2921(03)00070-9",

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KW - International trade

KW - Research and development (R&D)

KW - Total factor productivity (TFP)

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Technological convergence, R&D, trade and productivity growth

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