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How Robust is the R&D – Productivity relationship? Evidence from OECD Countries

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Author Info

  • Mosahid Khan

    ()
    (World Intellectual Property Organization, Geneva, Switzerland)

  • Kul B. Luintel

    ()
    (Cardiff Business School, Cardiff, United Kingdom)

  • Konstantinos Theodoris

    ()
    (Bank of England, London, United Kingdom)

Abstract

We examine the robustness of R&D and productivity relationship in a panel of 16 OECD countries. We control for fifteen productivity determinants predicted by different theoretical models. Following the advances in non-stationary panel data econometrics, we estimate four variants of thirteen specifications. All models appear co-integrated. Results are rigorously scrutinized through extensive bootstrap simulations and sensitivity checks. R&D and human capital emerge robust in all specifications making them universal drivers of productivity across nations. Most other determinants are also significant. Productivity relationships are heterogonous across countries depending on their accumulated stocks of knowledge and human capital.

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Bibliographic Info

Paper provided by World Intellectual Property Organization - Economics and Statistics Division in its series WIPO Economic Research Working Papers with number 01.

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Length: 32 pages
Date of creation: Dec 2010
Date of revision: Dec 2010
Handle: RePEc:wip:wpaper:01

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Keywords: R&D Capital Stocks; Multifactor Productivity; Heterogeneity; Panel Cointegration; Bootstrap Simulations.;

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Cited by:
  1. d'Artis Kancs & Boriss Siliverstovs, 2012. "R&D and Non-Linear Productivity Growth of Heterogeneous Firms," JRC-IPTS Working Papers JRC77247, Institute for Prospective and Technological Studies, Joint Research Centre, revised Dec 2012.
  2. Antonio Cubel & Vicente Esteve & M. Teresa Sanchis & Juan A. Sanchis-Llopis, 2014. "The Effect Of Foreign And Domesctic Patents On Total Factor Productivity During The Second Half Of The 20th Century," Working Papers 1404, Department of Applied Economics II, Universidad de Valencia.

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