Sectoral Productivity Growth and R&D Spillovers in the Netherlands

Tilburg University, CentER Working Paper No. 1999-15

Posted: 16 Mar 2000

See all articles by Bas Jacobs

Bas Jacobs

Erasmus University Rotterdam (EUR); Tinbergen Institute; CESifo (Center for Economic Studies and Ifo Institute)

Richard Nahuis

CPB Netherlands Bureau of Economic Policy Analysis (Deceased)

Paul J.G. Tang

CPB Netherlands Bureau of Economic Policy Analysis

Date Written: 1999

Abstract

This paper assesses empirically whether R&D spillovers are important and whether they originate from domestic or foreign activities. Data for eleven sectors are used to explain the impact on total factor productivity of R&D by the sector itself, by other Dutch sectors and by foreign sectors. We find that both domestic and foreign R&D are significant for the Dutch economy. The elasticity of total factor productivity with respect to R&D is approximately 35% for R&D by the sector itself, 18% for R&D by other Dutch sectors and 1*% for R&D by foreign sectors. Our findings also suggest that more R&D speeds up the absorption of foreign technologies. These results are confirmed in an analysis where we look at manufacturing and services separately. We find one difference: R&D in the service sectors helps to absorb foreign technologies, whereas R&D in manufacturing does not.

JEL Classification: O3, O4, F13, F14

Suggested Citation

Jacobs, Bas and Nahuis, Richard and Tang, Paul J.G., Sectoral Productivity Growth and R&D Spillovers in the Netherlands (1999). Tilburg University, CentER Working Paper No. 1999-15, Available at SSRN: https://ssrn.com/abstract=199736

Bas Jacobs

Erasmus University Rotterdam (EUR) ( email )

PO Box 1738
Rotterdam, Zuid-Holland 3000 DR
Netherlands
+314081452 (Phone)

HOME PAGE: http://personal.eur.nl/bjacobs

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

CESifo (Center for Economic Studies and Ifo Institute)

Poschinger Str. 5
Munich, DE-81679
Germany

Richard Nahuis (Contact Author)

CPB Netherlands Bureau of Economic Policy Analysis (Deceased)

N/A

Paul J.G. Tang

CPB Netherlands Bureau of Economic Policy Analysis

P.O. Box 80510
2508 GM The Hague, 2585 JR
Netherlands

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