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Using Linked Census R&D-Lrd Data To Analyze The Effect Of R&D Investment On Total Factor Productivity Growth

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Author Info

  • Donald Siegel
  • Frank R Lichtenberg

Abstract

Previous studies have demonstrated that productivity growth is positively correlated with the intensity of R&D investment. However, existing studies of this relationship at the micro (firm or line of business) level have been subject to some important limitations. The most serious of these has been an inability to adequately control for the diversified activities of corporations. This study makes use of linked Census R&D - LRD data, which provides comprehensive information on each firms' operations at the 4-digit SIC level. A marked improvement in explaining the association between R&D and TFP occurs when we make appropriate use of the data by firm by industry. Significant relationships between the intensities of investment in total, basic, and company-funded R&D, and TFP growth are confirmed.

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File URL: ftp://ftp2.census.gov/ces/wp/1989/CES-WP-89-02.pdf
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Bibliographic Info

Paper provided by Center for Economic Studies, U.S. Census Bureau in its series Working Papers with number 89-2.

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Date of creation: Jan 1989
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Handle: RePEc:cen:wpaper:89-2

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Keywords: CES; economic; research; micro; data; microdata; chief; economist;

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Cited by:
  1. Lucia Foster & Cheryl Grim, 2010. "Characteristics of the Top R&D Performing Firms in the U.S.: Evidence from the Survey of Industrial R&D," Working Papers 10-33, Center for Economic Studies, U.S. Census Bureau.
  2. Sang V Nguyen & Edward C Kokkelenberg, 1991. "Measuring Total Factor Productivity, Technical Change And The Rate Of Returns To Research And Development," Working Papers 91-3, Center for Economic Studies, U.S. Census Bureau.
  3. Chandana Chakraborty & Romesh Diwan, 1989. "R&D and Components of Technical Change," Eastern Economic Journal, Eastern Economic Association, vol. 15(4), pages 365-371, Oct-Dec.
  4. Ron Jarmin, 1995. "Using Matched Client And Census Data To Evaluate The Performance Of The Manufacturing Extension Partnership," Working Papers 95-7, Center for Economic Studies, U.S. Census Bureau.
  5. Douglas W Dwyer, 1995. "Whittling Away At Productivity Dispersion," Working Papers 95-5, Center for Economic Studies, U.S. Census Bureau.

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