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Investment, depreciation and obsolescence of R&D

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  • Chinloy, Peter
  • Jiang, Cheng
  • John, Kose

Abstract

Time-varying depreciation rates are estimated for research and development of the United States aggregate economy and innovation-intensive industries. Mean annual R&D depreciation rates are 31.5% for software, 41% for pharmaceuticals, 42% for semiconductors, and 30.4% for aggregate economy during 1978–2014. R&D depreciation rates vary across industries.

Suggested Citation

  • Chinloy, Peter & Jiang, Cheng & John, Kose, 2020. "Investment, depreciation and obsolescence of R&D," Journal of Financial Stability, Elsevier, vol. 49(C).
  • Handle: RePEc:eee:finsta:v:49:y:2020:i:c:s1572308920300565
    DOI: 10.1016/j.jfs.2020.100757
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    More about this item

    Keywords

    R&D; Time-varying depreciation; Pharmaceuticals; Semiconductors; Software;
    All these keywords.

    JEL classification:

    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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