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Modelling the Connections in the Cross Section between Technical Progress and R&D Intensity

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  • Richard R. Nelson

Abstract

This article is concerned with explaining the observed positive relationship in a cross section of industries between technical advance and R&D intensity. It presents a set of models to explore how technological opportunity and appropriability affect both of these variables. The models suggest that the key factors explaining the relationship are differences across industries in technological opportunity. Differences in appropriability make the relationship noisy.

Suggested Citation

  • Richard R. Nelson, 1988. "Modelling the Connections in the Cross Section between Technical Progress and R&D Intensity," RAND Journal of Economics, The RAND Corporation, vol. 19(3), pages 478-485, Autumn.
  • Handle: RePEc:rje:randje:v:19:y:1988:i:autumn:p:478-485
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    References listed on IDEAS

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    1. Laffont, Jean-Jacques & Tirole, Jean, 1986. "Using Cost Observation to Regulate Firms," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 614-641, June.
    2. Myerson, Roger B, 1979. "Incentive Compatibility and the Bargaining Problem," Econometrica, Econometric Society, vol. 47(1), pages 61-73, January.
    3. Michael H. Riordan, 1984. "On Delegating Price Authority to a Regulated Firm," RAND Journal of Economics, The RAND Corporation, pages 108-115.
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    Cited by:

    1. Robert W. Fogel, 2008. "The Impact of the Asian Miracle on the Theory of Economic Growth," NBER Chapters,in: Understanding Long-Run Economic Growth: Geography, Institutions, and the Knowledge Economy, pages 311-354 National Bureau of Economic Research, Inc.
    2. Hommes, Cars & Zeppini, Paolo, 2014. "Innovate or Imitate? Behavioural technological change," Journal of Economic Dynamics and Control, Elsevier, pages 308-324.
    3. Rachel Ngai & Roberto Samaniego, 2011. "Accounting for Research and Productivity Growth Across Industries," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 14(3), pages 475-495, July.
    4. Jan Eeckhout & Boyan Jovanovic, 2002. "Knowledge Spillovers and Inequality," American Economic Review, American Economic Association, vol. 92(5), pages 1290-1307, December.
    5. Bastian Rake, 2017. "Determinants of pharmaceutical innovation: the role of technological opportunities revisited," Journal of Evolutionary Economics, Springer, pages 691-727.
    6. Filson, Darren & Gretz, Richard T., 2004. "Strategic innovation and technology adoption in an evolving industry," Journal of Monetary Economics, Elsevier, pages 89-121.
    7. Ngai, L. Rachel & Samaniego, Roberto M., 2008. "Research and Productivity Growth Across Industries," LSE Research Online Documents on Economics 4410, London School of Economics and Political Science, LSE Library.
    8. Ngai, Liwa Rachel & Samaniego, Roberto, 2007. "On the Long run Determinants of Industry TFP Growth Rates," CEPR Discussion Papers 6408, C.E.P.R. Discussion Papers.
    9. Raquel Ortega-Argil├ęs, 2013. "R&D, knowledge, economic growth and the transatlantic productivity gap," Chapters,in: Handbook of Industry Studies and Economic Geography, chapter 11, pages 271-302 Edward Elgar Publishing.
    10. Fleisher, Belton M. & McGuire, William H. & Smith, Adam Nicholas & Zhou, Mi, 2013. "Intangible Knowledge Capital and Innovation in China," IZA Discussion Papers 7798, Institute for the Study of Labor (IZA).

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