IDEAS home Printed from https://ideas.repec.org/a/adr/anecst/y2005i79-80p383-404.html
   My bibliography  Save this article

Depreciation Estimation, R&D Capital Stock, and North American Manufacturing Productivity Growth

Author

Listed:
  • Jeffrey Bernstein
  • Theofanis P. Mamuneas

Abstract

This paper estimates R&D depreciation rates for the U.S. and Canadian manufacturing sectors. We find that R&D capital depreciates at a rate of 25 percent in the U.S., and in Canada the rate is 24 percent. Thus R&D capital depreciates at virtually the same rate in both countries. We also estimate similar user costs of R&D capital. This result implies that the marginal returns to R&D are equal in the two countries. Based on the new measures of R&D capital, factor price elasticities are estimated. For U.S. manufacturing a 1 percent increase in the R&D user cost leads to a 0.80 percent reduction in the demand for R&D capital, while for Canada the own R&D elasticity is significantly more inelastic at 0.14 percent. R&D growth contributes to TFP growth. In the U.S., R&D accounts for about 10 percent of annual productivity, while in Canada the contribution is around 6 percent.

Suggested Citation

  • Jeffrey Bernstein & Theofanis P. Mamuneas, 2005. "Depreciation Estimation, R&D Capital Stock, and North American Manufacturing Productivity Growth," Annals of Economics and Statistics, GENES, issue 79-80, pages 383-404.
  • Handle: RePEc:adr:anecst:y:2005:i:79-80:p:383-404
    as

    Download full text from publisher

    File URL: http://www.jstor.org/stable/20777582
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thomas Strobel, 2012. "New evidence on the sources of EU countries’ productivity growth—industry growth differences from R&D and competition," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 39(3), pages 293-325, August.
    2. Beck, Mathias & Junge, Martin & Kaiser, Ulrich, 2017. "Public Funding and Corporate Innovation," IZA Discussion Papers 11196, Institute of Labor Economics (IZA).
    3. Tim Buyse & Freddy Heylen & Ruben Schoonackers, 2015. "On The Role Of Public Policies And Wage Formation For Private Investment In R&D: A Long-Run Panel Analysis," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 15/911, Ghent University, Faculty of Economics and Business Administration.
    4. Chinloy, Peter & Jiang, Cheng & John, Kose, 2020. "Investment, depreciation and obsolescence of R&D," Journal of Financial Stability, Elsevier, vol. 49(C).
    5. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:adr:anecst:y:2005:i:79-80:p:383-404. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/ensaefr.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Secretariat General or Laurent Linnemer (email available below). General contact details of provider: https://edirc.repec.org/data/ensaefr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.