We examine the dynamics of ideas production and knowledge-productivity relationship in a panel of 19 OECD countries. A new data set of triadic patents is used. We rigorously address the issues of cross-country heterogeneity and endogeneity. Domestic and foreign ideas stocks exert positive but heterogeneous effects on ideas production. We find evidence of duplicate R&D but little support for endogenous growth. Countries with low domestic ideas bases could considerably improve productivity through ideas accumulation; however, this effect is modest for countries with sizeable ideas bases. An implication is that country-specific R&D policy appears potentially more effective than the one-size-fits-all approach.
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Paper provided by Cardiff University, Cardiff Business School, Economics Section in its series Cardiff Economics Working Papers with number
E2008/29.
Length: 47 pages Date of creation: Dec 2008 Date of revision: Publication status: Forthcoming in Canadian Journal of Economics Handle: RePEc:cdf:wpaper:2008/29
Find related papers by JEL classification: F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies F2 - International Economics - - International Factor Movements and International Business O3 - Economic Development, Technological Change, and Growth - - Technological Change O4 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods
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Jonathan Eaton & Eva Gutierrez & Samuel Kortum, 1998.
"European Technology Policy,"
NBER Working Papers
6827, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Jonathan Eaton & Eva Gutierrez & Samuel Kortum, 1998.
"European technology policy,"
Economic Policy,
CEPR, CES, MSH, vol. 13(27), pages 403-438, October.
[Downloadable!] (restricted)