Productivity Growth and R&D Expenditure in Taiwan's Manufacturing Firms
AbstractThis study sets out to estimate the impact of R&D on productivity within the private sector, with further analysis of the different impacts of R&D in high-tech and conventional firms. The study also aims to estimate the rates of return on R&D investment and total factor productivity at firm level. Based on a sample of 136 large manufacturing firms listed on the Taiwan Stock Exchange over the period 1994-2000, our findings suggest that Taiwan's R&D investment had a significant impact on firm productivity growth, with output elasticity standing at around 0.18. When the sample is divided into high-tech and conventional firms, the R&D output elasticity in high-tech firms is significantly greater than that of conventional firms. In addition, the average rate of return in high-tech firms is much larger than that estimated in other industries. Our empirical findings further show that although there was a dramatic decline in TFP in 1998 for all selected industries, this nevertheless started to climb again in 1999.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 9724.
Date of creation: May 2003
Date of revision:
Publication status: published as Ito, Takatoshi and Andrew K. Rose (eds.) Growth and productivity in East Asia, NBER--East Asia Seminar on Economics, vol. 13. Chicago and London: University of Chicago Press, 2003.
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Postal: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
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Find related papers by JEL classification:
- L6 - Industrial Organization - - Industry Studies: Manufacturing
This paper has been announced in the following NEP Reports:
- NEP-ALL-2003-05-29 (All new papers)
- NEP-EFF-2003-07-29 (Efficiency & Productivity)
- NEP-INO-2003-05-29 (Innovation)
- NEP-SEA-2003-05-29 (South East Asia)
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