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Productivity and R&D at the Firm Level in French Manufacturing

In: R & D, Patents, and Productivity

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  • Philippe Cuneo
  • Jacques Mairesse

Abstract

In a companion study to that of Griliches and Mairesse for the United States, we have investigated the relationship between output, labor, and physical and R&D capital during the 1972-1977 period for a sample of 182 R&D performing firms in the French nnufacturing industries. Our results are quite comparable to those obtained for the U.S. The relationship between firm productivity and R&D appears both strong and robust in the cross-sectional dimension of the data; it is less so in the time dimension. However, the within-firm estimates are still significant and of a likely order of magnitude.In this respect, they are more satisfactory than the U.S. ones. We show that this is largely due to a better measurement of the variables: (1) the fact that we can use a value-added measure of output instead of sales (or equivalently that we include materials among the factors of the production function); (2) the fact that we can correct the measures of labor, physical capital and output for the double counting or expensing out of the labor, capital and materials components of R&D expenditures.

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This chapter was published in:

  • Zvi Griliches, 1984. "R & D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1, October.
    This item is provided by National Bureau of Economic Research, Inc in its series NBER Chapters with number 10059.

    Handle: RePEc:nbr:nberch:10059

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    1. Zvi Griliches, 1998. "Comparing Productivity Growth: An Exploration of French and U.S. Industrial and Firm Data," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 157-186 National Bureau of Economic Research, Inc.
    2. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
    3. Zvi Griliches, 1980. "Returns to Research and Development Expenditures in the Private Sector," NBER Chapters, in: New Developments in Productivity Measurement, pages 419-462 National Bureau of Economic Research, Inc.
    4. Schankerman, Mark, 1981. "The Effects of Double-Counting and Expensing on the Measured Returns to R&D," The Review of Economics and Statistics, MIT Press, vol. 63(3), pages 454-58, August.
    5. Zvi Griliches & Jacques Mairesse, 1981. "Productivity and R and D at the Firm Level," NBER Working Papers 0826, National Bureau of Economic Research, Inc.
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