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Absorptive Capacity and Frontier Technology: Evidence from OECD Manufacturing Industries

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Author Info
Stevens, Phillip Andrew (NIESR)
Richard Kneller

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Abstract

This paper investigates whether differences in absorptive capacity help to explain cross-country differences in the level of productivity. We utilise stochastic frontier analysis to investigate two potential sources of this inefficiency: differences in human capital and R&D for nine industries in twelve OECD countries over the period 1973-92. We find that inefficiency in production does indeed exist and it depends upon the level of human capital of the countryÕs workforce.Evidence that the amount of R&D an industry undertakes is also important is less robust. Classification- JEL: O3, O4

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Paper provided by Royal Economic Society in its series Royal Economic Society Annual Conference 2003 with number 193.

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Date of creation: 04 Jun 2003
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Handle: RePEc:ecj:ac2003:193

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Related research
Keywords: absorptive capacity; human capital; R&D; SFA;

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  1. A. N. Rambaldi & Iyer & K., 2004. "Measuring Spillovers from Alternative Forms of Foreign Investment," Econometric Society 2004 Australasian Meetings 149, Econometric Society. [Downloadable!]
    Other versions:
  2. Michiel Van Dijk & Adam Szirmai, 2005. "Catch Up at the Micro-Level: Evidence from an Industry Case Study Using Manufacturing Census Data," DEGIT Conference Papers c010_038, DEGIT, Dynamics, Economic Growth, and International Trade. [Downloadable!]
  3. Szirmai, Adam & Van Dijk, Michiel, 2007. "The Micro-Dynamics of Catch Up in Indonesian Paper Manufacturing: An International Comparison of Plant-Level Performance," UNU-MERIT Working Paper Series 010, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
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