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R&D-Productivity Dynamics: Causality, Lags, and "Dry Holes"

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Abstract

We study four issues in R&D–productivity dynamics: does R&D Granger cause productivity, is there a lag between R&D and its productivity effects, does the potency of R&D vary in timing and magnitude, and what is the role of R&D spillovers and aggregate shocks. The results suggest that R&D causes productivity but not vice versa, productivity responds to changes in R&D with a considerable lag, the potency of R&D varies in timing and magnitude, and that the elasticity of productivity with respect to aggregate shocks is high, but negligible with respect to R&D spillovers.

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Bibliographic Info

Article provided by Universidad del CEMA in its journal Journal of Applied Economics.

Volume (Year): V (2002)
Issue (Month): (May)
Pages: 123-156

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Handle: RePEc:cem:jaecon:v:5:y:2002:n:1:p:123-156

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Keywords: total factor productivity; TFP; R&D; causality; lag structure;

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References

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Citations

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Cited by:
  1. Felipe Larraín B., 2006. "Innovación en Chile: Análisis y propuestas," IDB Publications 17058, Inter-American Development Bank.
  2. Gustavo Crespi & J. Rodrigo Fuentes & Roberto Alvarez & Jeffrey Orozco, 2010. "Nota técnica sobre el sistema nacional de innovación de Costa Rica: Una contribución al diálogo de políticas públicas entre el Gobierno de La República de Costa Rica y el Banco Inter-Americano ," IDB Publications 8608, Inter-American Development Bank.
  3. Hulya Ulku, 2004. "R&D, Innovation, and Economic Growth: An Empirical Analysis," IMF Working Papers 04/185, International Monetary Fund.
  4. Gabsi, Foued & Mhenni, Hatem & Koouba, Karim, 2010. "Determinants of Innovation in Emerging Country: an empirical study at the Tunisian firm level," MPRA Paper 46182, University Library of Munich, Germany, revised 2008.
  5. Ali-Yrkkö, Jyrki & Maliranta, Mika, 2006. "Impact of R&D on Productivity - Firm-level Evidence from Finland," Discussion Papers 1031, The Research Institute of the Finnish Economy.
  6. Gabsi, Foued & Mhenni, Hatem & Koouba, Karim, 2008. "Innovation Determinants in Emerging Countries: An Empirical Study at the Tunisian Firms level," MPRA Paper 17940, University Library of Munich, Germany, revised 2008.
  7. José; Miguel Benavente H., 2004. "Technological Innovation In Chile Where We Are and What Can be Done," Working Papers Central Bank of Chile 295, Central Bank of Chile.
  8. Maliranta, Mika, . "Micro Level Dynamics of Productivity Growth. An Empirical Analysis of the Great Leap in Finnish Manufacturing Productivity in 1975-2000," ETLA A, The Research Institute of the Finnish Economy, number 38.
  9. Maliranta, Mika, 2002. "From R&D to Productivity Through Micro-Level Restructuring," Discussion Papers 795, The Research Institute of the Finnish Economy.
  10. 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.
  11. Claudio Bravo Ortega & Álvaro García Marín, 2008. "Exploring the Relationship Between R&D and Productivity: A Country-Level Study," Working Papers Central Bank of Chile 472, Central Bank of Chile.
  12. Gustavo Crespi & Galileo Solís & Ezequiel Tacsir, 2011. "Evaluación del impacto de corto plazo de SENACYT en la innovación de las empresas panameñas," IDB Publications 38218, Inter-American Development Bank.
  13. Mika Maliranta, 2005. "R&D, International Trade and Creative Destruction—Empirical Findings from Finnish Manufacturing Industries," Journal of Industry, Competition and Trade, Springer, vol. 5(1), pages 27-58, January.
  14. Ibrahim Worku, 2011. "Road Sector Development and Economic Growth in Ethiopia," Working Papers 004, Ethiopian Development Research Institute - EDRI.
  15. Maliranta, Mika & Mohnen, Pierre & Rouvinen, Petri, 2008. "Is Inter-Firm Labor Mobility a Channel of Knowledge spillovers? Evidence from a Linked Employer-Employee Panel," MERIT Working Papers 005, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  16. Maliranta, Mika & Rouvinen, Petri, 2003. "Productivity Effects of ICT in Finnish Business," Discussion Papers 852, The Research Institute of the Finnish Economy.
  17. Böckerman, Petri & Eero, Lehto & Huovari, Janne, 2008. "The return to the technological frontier: The conditional effect of plants’ R&D on their productivity in Finnish manufacturing," MPRA Paper 8715, University Library of Munich, Germany.
  18. Lihong Yun, 2008. "Technical Progress and Labour Demand in Swedish Manufacturing Firms," Journal of Industry, Competition and Trade, Springer, vol. 8(2), pages 147-167, June.

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