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International Differences in R&D: An Empirical Investigation of a "Quality Ladder" Implication

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Author Info
Werner Antweiler, Jr.

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Abstract

R&D varies substantially across countries. By introducing the profit motive into R&D, the "quality ladder" growth model implies an inverse relationship between the national activity levels of R&D and unit costs of R&D. This inverse relationship is supported by findings from a data set of direct measures and a second data set that contains measures based on the R&D content of international trade.

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Publisher Info
Paper provided by University of Toronto, Department of Economics in its series Working Papers with number ecpap-95-01.

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Length: 21 pages
Date of creation: 01 Dec 1994
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Handle: RePEc:tor:tecipa:ecpap-95-01

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Related research
Keywords: International R&D Competition; R&D Content of Trade;

Find related papers by JEL classification:
F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies
O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

References listed on IDEAS
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  1. Trefler, Daniel, 1993. "International Factor Price Differences: Leontief Was Right!," Journal of Political Economy, University of Chicago Press, vol. 101(6), pages 961-87, December. [Downloadable!] (restricted)
  2. Feenstra, R.C., 1990. "Trade And Uneven Growth," Papers 353, California Davis - Institute of Governmental Affairs.
    Other versions:
  3. Klepper, Steven & Leamer, Edward E, 1984. "Consistent Sets of Estimates for Regressions with Errors in All Variables," Econometrica, Econometric Society, vol. 52(1), pages 163-83, January. [Downloadable!] (restricted)
  4. Segerstrom, Paul S, 1991. "Innovation, Imitation, and Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 807-27, August. [Downloadable!] (restricted)
    Other versions:
  5. Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, December.
  6. Helpman, Elhanan, 1984. "The Factor Content of Foreign Trade," Economic Journal, Royal Economic Society, vol. 94(373), pages 84-94, March. [Downloadable!] (restricted)
  7. Griliches, Zvi, 1994. "Productivity, R&D, and the Data Constraint," American Economic Review, American Economic Association, vol. 84(1), pages 1-23, March.
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  8. Stokey, Nancy L, 1991. "The Volume and Composition of Trade between Rich and Poor Countries," Review of Economic Studies, Blackwell Publishing, vol. 58(1), pages 63-80, January. [Downloadable!] (restricted)
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  9. Grossman, Gene M & Helpman, Elhanan, 1989. "Product Development and International Trade," Journal of Political Economy, University of Chicago Press, vol. 97(6), pages 1261-83, December. [Downloadable!] (restricted)
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  10. Gene M. Grossman & Elhanan Helpman, 1991. "Quality Ladders in the Theory of Growth," NBER Working Papers 3099, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  11. Coe, D.T. & Helpman, E., 1993. "International R&D Spillovers," Papers 5-93, Tel Aviv.
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  12. Deardorff, Alan V, 1982. "The General Validity of the Heckscher-Ohlin Theorem," American Economic Review, American Economic Association, vol. 72(4), pages 683-94, September. [Downloadable!] (restricted)
  13. Grossman, Gene M & Helpman, Elhanan, 1990. "Comparative Advantage and Long-run Growth," American Economic Review, American Economic Association, vol. 80(4), pages 796-815, September. [Downloadable!] (restricted)
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  14. Taylor, M. Scott, 1993. "'Quality ladders' and Ricardian trade," Journal of International Economics, Elsevier, vol. 34(3-4), pages 225-243, May. [Downloadable!] (restricted)
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  15. Grossman, Gene M & Helpman, Elhanan, 1991. "Quality Ladders and Product Cycles," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 557-86, May. [Downloadable!] (restricted)
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  16. Brecher, Richard & Choudhri, Ehsan U, 1984. "New Products and the Factor Content of International Trade," Journal of Political Economy, University of Chicago Press, vol. 92(5), pages 965-71, October. [Downloadable!] (restricted)
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