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Has New Zealand benefited from its investments in research & development?

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Author Info

  • Robin Johnson

    (Consultancy)

  • W A Razzak

    (Department of Labour)

  • Steve Stillman

    (Motu Economic and Public Policy Research)

Abstract

We use panel data for nine industries to evaluate research and development (R&D) investments in New Zealand over the past forty years. We estimate the impact of R&D stocks in a particular industry on output per person in that industry and on output per person in the rest of the economy. We examine both public and private R&D investments. Privately provided R&D has a statistically significant positive impact on own- industry output per person, suggesting it increases productivity. However, publicly provided R&D has no impact on own-industry output per person. There is also evidence that private R&D in certain industries positively affects output per person in the rest of the economy, i.e. it generates positive spillovers. There is no evidence of positive spillovers from publicly provided R&D.

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File URL: http://129.3.20.41/eps/dev/papers/0510/0510022.pdf
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Paper provided by EconWPA in its series Development and Comp Systems with number 0510022.

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Length: 23 pages
Date of creation: 31 Oct 2005
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Handle: RePEc:wpa:wuwpdc:0510022

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Keywords: R&D Spillovers Productivity;

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References

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Citations

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Cited by:
  1. Julia Hall & Grant M Scobie, 2006. "The Role of R&D in Productivity Growth: The Case of Agriculture in New Zealand: 1927 to 2001," Treasury Working Paper Series 06/01, New Zealand Treasury.
  2. W. A. Razzak & J. Timmins, 2010. "Education and labour productivity in New Zealand," Applied Economics Letters, Taylor and Francis Journals, vol. 17(2), pages 169-173.
  3. Laabas, Belkacem & Razzak, Weshah, 2010. "A Contribution Towards New Zealand’s Tax Reform," MPRA Paper 25810, University Library of Munich, Germany, revised Oct 2010.

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