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Productivity, trade and the R&D content of intermediate inputs

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  • Nishioka, Shuichiro
  • Ripoll, Marla

Abstract

This paper explores a novel way to evaluate the extent to which R&D knowledge embodied in intermediate inputs correlates with productivity at the industry level. We propose the concept of the R&D content of intermediates, which represents the knowledge stock embodied in the intermediate inputs used in production. Using a sample of 32 countries and 13 manufacturing industries we compute the elasticity of industry-level TFP with respect to the R&D content of intermediates. We find that among high-R&D industries, the R&D embodied in inputs purchased from the own industry is significantly associated with industry-level TFP. In this case, both own-industry domestic inputs as well as those imported from the G5 countries are relevant. In contrast, intermediate input trade does not appear to be a significant channel of R&D diffusion among low-R&D industries.

Suggested Citation

  • Nishioka, Shuichiro & Ripoll, Marla, 2012. "Productivity, trade and the R&D content of intermediate inputs," European Economic Review, Elsevier, vol. 56(8), pages 1573-1592.
  • Handle: RePEc:eee:eecrev:v:56:y:2012:i:8:p:1573-1592
    DOI: 10.1016/j.euroecorev.2012.08.004
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Neil Foster-McGregor & Johannes Pöschl, 2016. "Productivity effects of knowledge transfers through labour mobility," Journal of Productivity Analysis, Springer, vol. 46(2), pages 169-184, December.
    2. repec:spr:weltar:v:153:y:2017:i:4:d:10.1007_s10290-017-0282-4 is not listed on IDEAS
    3. Zhang, Gupeng & Zhou, Jianghua, 2016. "The effects of forward and reverse engineering on firm innovation performance in the stages of technology catch-up: An empirical study of China," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 212-222.
    4. Ana Maria Santacreu & Federico Gavazzoni, 2015. "International R&D Spillovers and Asset Prices," 2015 Meeting Papers 405, Society for Economic Dynamics.
    5. Piermartini, Roberta & Rubínová, Stela, 2014. "Knowledge spillovers through international supply chains," WTO Staff Working Papers ERSD-2014-11, World Trade Organization (WTO), Economic Research and Statistics Division.
    6. repec:sls:ipmsls:v:32:y:2017:4 is not listed on IDEAS
    7. Brenner, Thomas, 2015. "Science, Innovation and National Growth," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112873, Verein für Socialpolitik / German Economic Association.
    8. Neil Foster-McGregor & Johannes Pöschl & Robert Stehrer, 2014. "Capacities and Absorptive Barriers for International R&D Spillovers through Intermediate Inputs," wiiw Working Papers 108, The Vienna Institute for International Economic Studies, wiiw.
    9. Thomas Brenner, 2014. "Science, Innovation and National Growth," Working Papers on Innovation and Space 2014-03, Philipps University Marburg, Department of Geography.
    10. Nishioka, Shuichiro, 2013. "R&D, trade in intermediate inputs, and the comparative advantage of advanced countries," Journal of the Japanese and International Economies, Elsevier, vol. 30(C), pages 96-110.

    More about this item

    Keywords

    International transfer of technology; Intermediate input trade; R&D stock; Industry-level TFP;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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