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R&D, International Technical Diffusion and Total Factor Productivity

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  • Frantzen, Dirk
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    Abstract

    Equations are presented that relate the long-run evolution of countries' total factor productivity to domestic and to foreign R&D capital. A cointegration analysis is performed on a panel of pooled annual time series concerning twenty-one industrial countries during the period 1965-91. The results show the influence of foreign R&D to be, on average, stronger than that of domestic R&D. There is also evidence of a decrease in the influence of R&D in the mid-1970s, without significant recovery afterwards. This is explained by the occurrence of decreasing returns to innovation and to imitation within a technological system based on assembly-line production, and by institutional inertia that retard the reskilling of the labor force required for a transition to a new system based on information technology. Copyright 1998 by WWZ and Helbing & Lichtenhahn Verlag AG

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    Bibliographic Info

    Article provided by Wiley Blackwell in its journal Kyklos.

    Volume (Year): 51 (1998)
    Issue (Month): 4 ()
    Pages: 489-508

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    Handle: RePEc:bla:kyklos:v:51:y:1998:i:4:p:489-508

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    Cited by:
    1. Erdal Atukeren, 2005. "R&D Races and Spillovers between the EU and the US: Some Causal Evidence," KOF Working papers 05-105, KOF Swiss Economic Institute, ETH Zurich.

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