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Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries

Author Info

Listed author(s):
  • Rachel Griffith
  • Stephen Redding
  • John Van Reenen

Abstract

Many writers have claimed that R&D has two 'faces'. In addition to the conventional role of stimulating innovation, R&D enhances technology transfer by improving the ability of firms to learn about advances in the leading edge ('absorptive capacity'). In this paper we document that there has been convergence of TFP within a panel of industries across thirteen OECD countries since 1970. Furthermore, we find evidence that both R&D and human capital appear statistically and economically important in this catch up process as well as stimulating innovation directly. Trade, by contrast, plays a more modest role in productivity growth.

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File URL: http://cep.lse.ac.uk/pubs/download/DP0458.pdf
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Paper provided by Centre for Economic Performance, LSE in its series CEP Discussion Papers with number dp0458.

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Date of creation: May 2000
Handle: RePEc:cep:cepdps:dp0458
Contact details of provider: Web page: http://cep.lse.ac.uk/_new/publications/series.asp?prog=CEP

Keywords: R and D; human capital; total factor productivity; convergence;

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Find related papers by JEL classification:
  • O0 - Economic Development, Innovation, Technological Change, and Growth - - General
  • 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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  15. Rachel Griffith & Stephen Redding & John Van Reenen, 2004. "Mapping the Two Faces of R&D: Productivity Growth in a Panel of OECD Industries," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 883-895, November.
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Blog mentions

As found by EconAcademics.org, the blog aggregator for Economics research:
  1. Les infrastructures d’innovation et croissance économique en Afrique
    by jm26121978@gmail.com (Jihène Malek) in BS Initiative on 2014-07-02 06:05:09
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