The Productivity Effects of Internal and External R&D: Evidence from a Dynamic Panel Data Model

15 Pages Posted: 6 May 2008

See all articles by Boris Lokshin

Boris Lokshin

Maastricht University, School of Business and Economics

René Belderbos

University of Leuven (KUL) - Department of Managerial Economics, Strategy and Innovation; Maastricht University - Department of Organization & Strategy

Martin A. Carree

University of Maastricht - Department of Organization & Strategy

Date Written: 0000

Abstract

We examine the impact of internal and external R&D on labour productivity in a 6-year panel of Dutch manufacturing firms. We apply a dynamic panel data model that allows for decreasing or increasing returns to scale in internal and external R&D and for economies of scope. We find complementarity between internal and external R&D, with a positive impact of external R&D only evident in case of sufficient internal R&D. These findings confirm the role of internal R&D in enhancing absorptive capacity. The scope economies are accompanied by decreasing returns to scale at high levels of internal and external R&D. The analysis indicates that productivity grows by increasing the share of external R&D in total R&D.

Suggested Citation

Lokshin, Boris and Belderbos, Rene and Carree, Martin A., The Productivity Effects of Internal and External R&D: Evidence from a Dynamic Panel Data Model (0000). Oxford Bulletin of Economics and Statistics, Vol. 70, Issue 3, pp. 399-413, June 2008. Available at SSRN: https://ssrn.com/abstract=1128393 or http://dx.doi.org/10.1111/j.1468-0084.2008.00503.x

Boris Lokshin

Maastricht University, School of Business and Economics ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands
+31 43 388 3697 (Phone)
+31 43 325 4893 (Fax)

Rene Belderbos

University of Leuven (KUL) - Department of Managerial Economics, Strategy and Innovation ( email )

Naamsestraat 69
Leuven, B-3000
Belgium
+32 16 32 6912 (Phone)
+32 16 32 6732 (Fax)

Maastricht University - Department of Organization & Strategy ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

Martin A. Carree

University of Maastricht - Department of Organization & Strategy ( email )

P.O. Box 616
Maastricht, 6200 MD
Netherlands

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