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Determinants of R&D and Its Productivity: Identifying Demand and Supply Channels (First revision)

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  • Nagaoka, Sadao

Abstract

Identifying whether an exogenous factor affects R&D from a demand side or from a supply side is an important issue. This paper, first, theoretically shows that a favorable change in either side can reduce the R&D productivity in equilibrium, so that the reduced form estimation cannot provide a clear identification. Secondly, it estimates both structural and reduced form patent production functions, based on instrumental variables approach, using a large database on Japanese firms. According to the estimation, while the initial firm size, market concentration or export orientation increases R&D, none of them significantly shifts the structural patent production function.

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File URL: http://hermes-ir.lib.hit-u.ac.jp/rs/bitstream/10086/15976/1/070iirWP03-12.pdf
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Bibliographic Info

Paper provided by Institute of Innovation Research, Hitotsubashi University in its series IIR Working Paper with number 03-12.

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Length: 30, [5] p.
Date of creation: Jun 2003
Date of revision:
Handle: RePEc:hit:iirwps:03-12

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Keywords: R&D productivity; patent; firm size; competition;

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