R&D and Productivity in OECD Firms and Industries: A Hierarchical Meta-Regression Analysis

42 Pages Posted: 22 Nov 2015

See all articles by Mehmet Ugur

Mehmet Ugur

University of Greenwich

Eshref Trushin

De Montfort University - Department of Economics and Marketing

Edna Solomon

University of Greenwich - Business School

Francesco Guidi

University of Greenwich - Greenwich Business School

Date Written: August 10, 2015

Abstract

Effects of R&D investment on frim/industry productivity have been investigated widely thanks to pioneering contributions by Zvi Griliches and others in late 1970s and early 1980s. We aim to establish where the balance of the evidence lies and what factors may explain the variation in the research findings. Using 1,258 estimates from 65 primary studies and hierarchical meta-regression models, we report that the average elasticity and rate-of-return estimates are both positive, but smaller than those reported in prior narrative reviews and meta-analysis studies. We discuss the likely sources of upward bias in prior reviews, investigate the sources of heterogeneity in the evidence base, and discuss the implications for future research. Overall, this study contributes to existing knowledge by placing the elasticity and rate-of-return estimates under a critical spot light and providing empirically-verifiable explanations for the variation in the evidence base.

Keywords: R&D, knowledge capital, productivity, meta-analysis

JEL Classification: D24, O30, O32, C49, C80

Suggested Citation

Ugur, Mehmet and Trushin, Eshref and Solomon, Edna and Guidi, Francesco, R&D and Productivity in OECD Firms and Industries: A Hierarchical Meta-Regression Analysis (August 10, 2015). Available at SSRN: https://ssrn.com/abstract=2693943 or http://dx.doi.org/10.2139/ssrn.2693943

Mehmet Ugur (Contact Author)

University of Greenwich ( email )

30 Park Row
Greenwich
London, SE10 9LS
United Kingdom

Eshref Trushin

De Montfort University - Department of Economics and Marketing ( email )

Hugh Aston Bldg The Gateway
Leicester, LE1 9BH
United Kingdom

Edna Solomon

University of Greenwich - Business School ( email )

United Kingdom

Francesco Guidi

University of Greenwich - Greenwich Business School ( email )

Old Royal Naval College, Park Row, Greenwich
London, SE10 9LS
United Kingdom
+44 (0) 20 8331 9167 (Phone)
+44 (0) 20 8331 9924 (Fax)

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