This paper analyses the determinants of productivity growth in a panel of UK manufacturing industries. Two potential sources of productivity growth are identified: domestic innovation and technology transfer from a frontier economy. We examine the roles played by R & D expenditure and international trade in explaining each source of productivity growth. R & D expenditure is found to raise the domestic rate of innovation, while international trade facilitates the transfer of technologies to the non-frontier economy.
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number
dp0428.
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