The Knowledge Production of 'R' and 'D'
AbstractMany studies investigate the relationship between R&D expenditures as an input and patents as an intermediate product or output of a knowledge production function. We suggest that the productivity of research in patent production functions has been underestimated in the literature, as scholars typically use information about R&D, i.e. the sum of research expenditure and development expenditure, due to data availability. However, in most industries only (applied) research will lead to patentable knowledge, and development happens after the initial research phase that may have led to a patent. Instead of using data on R&D, we separate the knowledge creating process into 'R' and 'D'. This data stems from R&D surveys of Belgian firms. It turns out that only the 'R' part of R&D expenditure has a significant effect on patents and that development expenditure are insignificant. Thus previous literature relying on R&D expenditure suffers from a measurement error, such that the coefficient of R&D is biased towards zero, as R&D includes a large fraction of irrelevant expenditure, i.e. development expenditure, with respect to patenting. --
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Bibliographic InfoPaper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-046.
Date of creation: 2008
Date of revision:
Patents; Research; Development; Knowledge Production Function;
Other versions of this item:
- Czarnitzki, Dirk & Kraft, K. & Thorwarth, Susanne, 2009. "The knowledge production of 'R' and 'D'.," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/235265, Katholieke Universiteit Leuven.
- Czarnitzki, Dirk & Kraft, K. & Thorwarth, Susanne, 2008. "The knowledge production of ’R’ and ’D’," Open Access publications from Katholieke Universiteit Leuven urn:hdl:123456789/217511, Katholieke Universiteit Leuven.
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-09-13 (All new papers)
- NEP-EFF-2008-09-13 (Efficiency & Productivity)
- NEP-INO-2008-09-13 (Innovation)
- NEP-IPR-2008-09-13 (Intellectual Property Rights)
- NEP-KNM-2008-09-13 (Knowledge Management & Knowledge Economy)
- NEP-MIC-2008-09-13 (Microeconomics)
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