Testing the Pooling Assumption in an Industry Panel of R&D Investment: What Do We Learn?
AbstractIn this paper we test the pooling assumption for the determinants of industry R&D investment. Most studies consider pooled estimates, but if the parameters differ across industries, pooled coefficients will not provide reliable estimates of individual industry effects. Moreover, pooled coefficients may not even be consistent estimates of the average. For a panel of UK manufacturing industries we find that pooling is only valid for output fluctuations, lagged R&D and real interest rates. Implementing the test results into our model, we find government funding is only significant for low-tech R&D. Skilled labour and foreign R&D matter only in high-tech industries.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by National Institute of Economic and Social Research in its series NIESR Discussion Papers with number 241.
Date of creation: May 2004
Date of revision:
Contact details of provider:
Postal: 2 Dean Trench Street Smith Square London SW1P 3HE
Web page: http://niesr.ac.uk
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-10-29 (All new papers)
- NEP-INO-2005-10-29 (Innovation)
- NEP-MAC-2005-10-29 (Macroeconomics)
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Mark Rogers, 2010. "R&D and productivity: using UK firm-level data to inform policy," Empirica, Springer, vol. 37(3), pages 329-359, July.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Communications Manager).
If references are entirely missing, you can add them using this form.