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How do R&D factors affect total factor productivity: based on stochastic frontier analysis method

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  • Shikuan Zhao

    (School of Public Policy and Administration, Chongqing University, Chongqing, China)

  • Wen Tian

    (Institute of Finance and Economics, Shanghai University of Finance and Economics, Shanghai, China)

  • Abd Alwahed Dagestani

    (School of Business, Central South University, Changsha, China)

Abstract

Based on provincial panel data from 1998-2018, this paper estimates research and development (R&D) factors, and a stochastic frontier analysis (SFA) model is constructed to examine the effects of R&D factors on regional total factor productivity (TFP). The results show that both R&D capital stock and R&D personnel can significantly promote regional TFP, but the productivity-enhancing effect of R&D factors is different between regions. Specifically, R&D capital and R&D personnel can promote TFP in eastern and central provinces, and the promotion effect is not significant in western provinces. In addition, compared with investment-driven regions, innovation-driven regions are more likely to enhance TFP by R&D factors.

Suggested Citation

  • Shikuan Zhao & Wen Tian & Abd Alwahed Dagestani, 2022. "How do R&D factors affect total factor productivity: based on stochastic frontier analysis method," Economic Analysis Letters, Anser Press, vol. 1(2), pages 28-34, December.
    • Handle: RePEc:bba:j00004:v:1:y:2022:i:2:p:28-34:d:72
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    References listed on IDEAS

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    1. Luigi Aldieri & Teemu Makkonen & Concetto Paolo Vinci, 2021. "Spoils of innovation? Employment effects of R&D and knowledge spillovers in Finland," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(4), pages 356-370, May.
    2. Edna Maeyen Solomon, 2021. "Types of R&D investment and firm productivity: UK evidence on heterogeneity and complementarity in rates of return," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(5), pages 536-563, July.
    3. Pieri, Fabio & Vecchi, Michela & Venturini, Francesco, 2018. "Modelling the joint impact of R&D and ICT on productivity: A frontier analysis approach," Research Policy, Elsevier, vol. 47(9), pages 1842-1852.
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