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Do R&D expenditures really matter for TFP?

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  • Vincenzo Atella
  • Beniamino Quintieri

Abstract

Recently, several studies have emphasized the role of R&D expenditure in determining Total Factor Productivity (TFP). In this paper it is shown that the relationship between R&D variables and TFP is far from being established. In particular, by using data for the Italian economy, it is found that the estimated effects of R&D variables on TFP crucially depends on: (i) the way in which the production function, used to derive Solow residuals, is defined; (ii) the numbers of maintained hypotheses used to estimate Solow residuals; (iii) the level of aggregation of the data employed in the empirical analysis.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics.

Volume (Year): 33 (2001)
Issue (Month): 11 ()
Pages: 1385-1389

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Handle: RePEc:taf:applec:v:33:y:2001:i:11:p:1385-1389

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Cited by:
  1. Jurgen Bitzer & Andreas Stephan, 2007. "A Schumpeter-inspired approach to the construction of R&D capital stocks," Applied Economics, Taylor & Francis Journals, vol. 39(2), pages 179-189.
  2. Edwin Garces & Tugrul Daim, 2012. "Impact of Renewable Energy Technology on the Economic Growth of the USA," Journal of the Knowledge Economy, Springer, vol. 3(3), pages 233-249, September.
  3. Sharma, Chandan, 2011. "R&D and productivity in the Indian pharmaceutical firms," MPRA Paper 31681, University Library of Munich, Germany.
  4. Guido Ascari & Valeria di Cosmo, 2005. "Determinants of total factor productivity in the italian Regions," SCIENZE REGIONALI, FrancoAngeli Editore, vol. 2005(2).
  5. Taegi Kim & Changsuh Park, 2006. "Productivity growth in Korea: efficiency improvement or technical progress?," Applied Economics, Taylor & Francis Journals, vol. 38(8), pages 943-954.
  6. Stefano Fachin & Andrea Gavosto, 2010. "Trends of labour productivity in Italy: a study with panel co-integration methods," International Journal of Manpower, Emerald Group Publishing, vol. 31(7), pages 755-769, November.
  7. Maarten Cornet & Marieke Rensman, 2001. "The location of R&D in the Netherlands: trends, determinants and policy," CPB Document 14, CPB Netherlands Bureau for Economic Policy Analysis.

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