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Defence Innovation Stock and Total Factor Productivity

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  • Erik Poole
  • Jean-Thomas Bernard

Abstract

This study explores the impact of defense industrial production on the productivity of four Canadian three-digit SIC industries. A Tornqvist index of the annual change of total factor productivity is calculated. A defense production "innovation stock" is constructed from new data on defense industrial production in Canada between 1961 and 1985. Seemingly unrelated regression estimation multiple regression analysis shows that military production has a negative impact on total factor productivity for the four industries.

Suggested Citation

  • Erik Poole & Jean-Thomas Bernard, 1992. "Defence Innovation Stock and Total Factor Productivity," Canadian Journal of Economics, Canadian Economics Association, vol. 25(2), pages 438-452, May.
    • Handle: RePEc:cje:issued:v:25:y:1992:i:2:p:438-52
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    Cited by:

    1. Cowan, Robin & Foray, Dominique, 1995. "Quandaries in the economics of dual technologies and spillovers from military to civilian research and development," Research Policy, Elsevier, vol. 24(6), pages 851-868, November.
    2. Gayane Harutyunyan, 2017. "The Impact of Military RD on the Innovative Development of the Civilian Sector," Public administration issues, Higher School of Economics, issue 5, pages 27-37.
    3. Bergman, Karin, 2011. "Productivity Effects of Privately and Publicly Funded R&D," Working Papers 2011:28, Lund University, Department of Economics.
    4. Celeste Amorim Varum & Bruno Cibrão, 2008. "On R&D, medium and high-tech industries and productivity: an application to the Portuguese case," Working Papers de Economia (Economics Working Papers) 51, Departamento de Economia, Gestão e Engenharia Industrial, Universidade de Aveiro.
    5. Haskel, Jonathan & Wallis, Gavin, 2013. "Public support for innovation, intangible investment and productivity growth in the UK market sector," Economics Letters, Elsevier, vol. 119(2), pages 195-198.
    6. Dominique Guellec & Bruno Van Pottelsberghe de la Potterie, 2004. "From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(3), pages 353-378, July.
    7. Cameron, G., 1996. "Innovation and economic growth," LSE Research Online Documents on Economics 20685, London School of Economics and Political Science, LSE Library.
    8. Chaoqing Yuan & Sifeng Liu & Yingjie Yang & Yu Shen, 2016. "On the contribution of defense innovation to China’s economic growth," Defence and Peace Economics, Taylor & Francis Journals, vol. 27(6), pages 820-837, November.
    9. Mowery, David C., 2010. "Military R&D and Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1219-1256, Elsevier.
    10. Tonmoy Chatterjee & Nilendu Chatterjee, 2021. "National Defence Under Alternative Trade Policy Regimes: Theory and Evidence from Developing Countries," Foreign Trade Review, , vol. 56(1), pages 31-59, February.
    11. Andrew J. Yates, 1997. "The Unobserved Relation Regressions Model with an Application to Used Truck Prices," Southern Economic Journal, John Wiley & Sons, vol. 64(1), pages 45-55, July.
    12. Ismet GOCER & Sedat ALATAS & Osman PEKER, 2016. "Effects of R&D and innovation on income in EU countries: new generation panel cointegration and causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(609), W), pages 153-164, Winter.
    13. Amani Elnasri & Kevin J. Fox, 2014. "The Contribution of Research and Innovation to Productivity and Economic Growth," Discussion Papers 2014-08, School of Economics, The University of New South Wales.
    14. Ismet GOCER & Sedat ALATAS & Osman PEKER, 2016. "Effects of R&D and innovation on income in EU countries: new generation panel cointegration and causality analysis," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(609), W), pages 153-164, Winter.

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