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Total Factor Productivity and R&D Spillovers

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  • Higon, M Dolores Anon

    (University of Warwick)

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    Abstract

    The main purpose of this paper is to present new evidence on the long run relationship between R&D efforts and productivity performance of UK manufacturing industries in the presence of inter-industry and international spillovers of technology. The main dataset used to perform this analysis is a panel of eight UK manufacturing industries over the period 1970 to 1997. The empirical results indicate that there is a positive and significant link between industry's R&D activities and productivity in the long run. In addition, robust evidence was found of positive and significant domestic R&D externalities. Conversely, the finding that international spillovers do not contribute to TFP suggests that R&D spillovers are primarily an intra-national phenomenon, which may serve as a warning against under-estimating the importance of domestic technological efforts and over-estimating the potential contribution of international spillovers.

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    Bibliographic Info

    Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 107.

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    Date of creation: 04 Jun 2003
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    Handle: RePEc:ecj:ac2003:107

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    Web page: http://www.res.org.uk/society/annualconf.asp
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    Keywords: R&D spillovers; total factor productivity;

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