Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries

Posted: 17 Nov 2009

See all articles by Stephen Redding

Stephen Redding

affiliation not provided to SSRN

John Van Reenen

London School of Economics - Centre for Economic Performance (CEP); Stanford Graduate School of Business; Institute for Fiscal Studies (IFS); Centre for Economic Policy Research (CEPR)

Rachel Griffith

Institute for Fiscal Studies (IFS); University of Manchester; Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: 2004

Abstract

The two aspects of research and development (R&D) involving the stimulation of innovation and the facilitation of technology transfer are examined. There has been little econometric work done that assesses the statistical significance and quantitative importance of the technology transfer aspect of R&D, and this study provides analysis of this area. Using a panel of industries spanning twelve OECD countries since 1970, the statistical significance and quantitative importance of facilitating technology transfer is examined.The data used is from the OECD International Sectoral Database, the OECD ANBERD data set, the OECD Bilateral Trade Database, the UNIDO database and other sources.The data covers twelve countries over the years 1974-1990. An empirical framework is used in which innovation and technology transfer provide two potential sources of productivity growth for countries behind the technological frontier. It is found that industries that have lagged behind in the productivity sector catch up quickly if they invest heavily in R&D. Findings provide evidence of R&D effects on both the rates of innovation and technology transfer across a wide range of specifications. Conclusions show econometric evidence that the impact of R&D and human capital is higher in countries that have lower levels of relative total factor productivity (TFP) and that are further from the industry-specific technological frontier. (JSD)

Keywords: Experimental/primary research, Firm productivity, Innovation process, Technology transfer, Research opportunities, Human capital, Economic impact, R&D

Suggested Citation

Redding, Stephen and Van Reenen, John Michael and Griffith, Rachel, Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries (2004). Review of Economics and Statistics, Vol. 86, Issue 4, p. 883-895 2004. Available at SSRN: https://ssrn.com/abstract=1506825

Stephen Redding (Contact Author)

affiliation not provided to SSRN

No Address Available

John Michael Van Reenen

London School of Economics - Centre for Economic Performance (CEP) ( email )

Houghton Street
London WC2A 2AE
United Kingdom
+44 20 7955 6976 (Phone)
+44 20 7955 6848 (Fax)

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London, WC1E 7AE
United Kingdom
+44 20 7240 6740 (Phone)
+44 20 7240 6136 (Fax)

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Rachel Griffith

Institute for Fiscal Studies (IFS) ( email )

7 Ridgmount Street
London WC1E 7AE
United Kingdom
+44 20 7291 4800 (Phone)
+44 20 7323 4780 (Fax)

University of Manchester ( email )

Arthur Lewis Building
Oxford Road
Manchester, M13 9PL
United Kingdom

HOME PAGE: http://www.ifs.org.uk/people/profile?id=37

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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