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Has New Zealand benefited from its investments in research & development?


  • Robin Johnson
  • W. A. Razzak
  • Steven Stillman


We use panel data for nine industries to evaluate research and development (R&D) investments in New Zealand over the past forty years. We estimate the impact of R&D stocks in a particular industry on output per person in that industry and on output per person in the rest of the economy. We examine both public and private R&D investments. Privately provided R&D has a statistically significant positive impact on own-industry output per person, suggesting it increases productivity. However, publicly provided R&D has no impact on own-industry output per person. There is also evidence that private R&D in certain industries positively affects output per person in the rest of the economy, i.e. it generates positive spillovers. There is no evidence of positive spillovers from publicly provided R&D.

Suggested Citation

  • Robin Johnson & W. A. Razzak & Steven Stillman, 2007. "Has New Zealand benefited from its investments in research & development?," Applied Economics, Taylor & Francis Journals, vol. 39(19), pages 2425-2440.
  • Handle: RePEc:taf:applec:v:39:y:2007:i:19:p:2425-2440
    DOI: 10.1080/00036840600707308

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    References listed on IDEAS

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    Cited by:

    1. Johnson, Robin, 2005. "The Structure and Economic Impact of R&D Organisation in New Zealand," 2005 Conference, August 26-27, 2005, Nelson, New Zealand 98521, New Zealand Agricultural and Resource Economics Society.
    2. Julia Hall & Grant M Scobie, 2006. "The Role of R&D in Productivity Growth: The Case of Agriculture in New Zealand: 1927 to 2001," Treasury Working Paper Series 06/01, New Zealand Treasury.
    3. W. A. Razzak & J. Timmins, 2010. "Education and labour productivity in New Zealand," Applied Economics Letters, Taylor & Francis Journals, vol. 17(2), pages 169-173, January.
    4. Laabas, Belkacem & Razzak, Weshah, 2010. "A Contribution Towards New Zealand’s Tax Reform," MPRA Paper 25810, University Library of Munich, Germany, revised Oct 2010.
    5. Roger Svensson, 2011. "Publicly-Funded R&D Programs and Survival of Patents," Post-Print hal-00762896, HAL.

    More about this item

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General


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