Patents, R&D and Lag Effects: Evidence from Flexible Methods for Count Panel Data on Manufacturing Firms

40 Pages Posted: 1 Jun 2007

See all articles by Shiferaw Gurmu

Shiferaw Gurmu

Georgia State University - Department of Economics

Fidel Perez‐Sebastian

Universidad de Alicante - Department of Economic Analysis

Date Written: March 2007

Abstract

This paper investigates the relationship between patents and research and development expenditures using new longitudinal patent data at the firm level for the U.S. manufacturing sector from 1982-1992. The paper also develops a new class of count panel data models based on series expansion of the distribution of individual effects. Estimation results from various distributed lag and dynamic multiplicative panel count data models show that the contemporaneous relationship between patenting and R&D expenditures continues to be strong, accounting for over 60% of the total R&D elasticity. The lag effects are higher than have previously been found for the 1970's data.

Keywords: Innovative activity, Patents and R&D, Individual effects, Count panel data methods

JEL Classification: C20, O30

Suggested Citation

Gurmu, Shiferaw and Perez Sebastian, Fidel, Patents, R&D and Lag Effects: Evidence from Flexible Methods for Count Panel Data on Manufacturing Firms (March 2007). Andrew Young School of Policy Studies Research Paper Series No. 07-26, Available at SSRN: https://ssrn.com/abstract=990025 or http://dx.doi.org/10.2139/ssrn.990025

Shiferaw Gurmu (Contact Author)

Georgia State University - Department of Economics ( email )

P.O. Box 3992
Atlanta, GA 30302-3992
United States

Fidel Perez Sebastian

Universidad de Alicante - Department of Economic Analysis ( email )

03080 Alicante
Spain

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