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The Internationalization Of Agricultural Technology: Patents, R&D Spillovers, And Their Effects On Productivity In The European Union And United States

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  • DAVID SCHIMMELPFENNIG
  • COLIN THIRTLE

Abstract

"Multilateral indices of total factor productivity (TFP) allow efficiency comparisons between ten European Union countries and the United States from 1973 to 1993. Differences in TFP levels are then explained by land quality differences, public research and development (R&D) expenditures, education levels, private-sector patents, international spillovers of public R&D, and private-sector technology transfer. There is evidence that public R&D results in limited knowledge spillovers between the European countries and the United States. However, the use of international patent data from the Yale Technology Concordance shows not only that patents matter, but also that private sector technology transfer may be the dominant force in explaining TFP trends. The United States and the European Union countries with more advanced research systems (Netherlands, Denmark, France, and Belgium) converge in a high-growth club, while Germany, Luxembourg, Greece, Italy, Ireland, and the United Kingdom form the slow-growth group. Ignoring knowledge spillovers and technology transfer leads to biased estimates of R&D elasticities, which is hardly surprising since the private sector is now spending more than the public in some of these countries. Thus, the estimated rate of return to public agricultural R&D falls from over 60% in the closed economy model to 10% in the model that takes account of international spillovers. (JEL" Q16) Copyright 1999 Western Economic Association International.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 17 (1999)
Issue (Month): 4 (October)
Pages: 457-468

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Handle: RePEc:bla:coecpo:v:17:y:1999:i:4:p:457-468

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Cited by:
  1. Johnson, Robin, 2000. "Rates of Return on New Zealand R&D," 2000 Conference (44th), January 23-25, 2000, Sydney, Australia 123686, Australian Agricultural and Resource Economics Society.
  2. Luh, Yir-Hueih & Chang, Ching-Cheng, 2004. "Efficiency Change And Productivity Growth In East Asian Agriculture," 2004 Annual meeting, August 1-4, Denver, CO 20220, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Esposti, Roberto, 2008. "Why Should Regional Agricultural Productivity Growth Converge? Evidence from Italian Regions," 2008 International Congress, August 26-29, 2008, Ghent, Belgium 43955, European Association of Agricultural Economists.
  4. Natalia Aldaz & Joaquín A. Millán, 2003. "A Comparison of Agricultural Productivity in the European Union Regions," ERSA conference papers ersa03p223, European Regional Science Association.
  5. Tokgoz, Simla, 2003. "R&D Spillovers In Agriculture: Results From A North-South Trade Model," 2003 Annual meeting, July 27-30, Montreal, Canada 22258, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  6. Esposti, Roberto, 0. "Knowledge, Technology and Innovations for a Bio-based Economy: Lessons from the Past, Challenges for the Future," Bio-based and Applied Economics Journal, Italian Association of Agricultural and Applied Economics (AIEAA), issue 3.
  7. Roberto ESPOSTI, 2000. "Public R&D Design and Technological Spill-Ins. A Dynamic Model," Working Papers 136, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.

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