International Comparisons of R&D Expenditure: Does an R&D PPP make a difference?
Purchasing power parities (PPPs) for R&D expenditure in 19 manufacturing industries are developed for France, Germany, Japan, the Netherlands and the United Kingdom relative to the United States for the years 1997 and 1987. These PPPs are based on R&D input prices for specific cost categories and differ substantially from current practice of comparing R&D expenditure using GDP PPPs and deflators. After taking into account differences in the relative price of R&D labor and materials, separate PPPs for other R&D cost categories are less essential, and a simpler version using GDP PPPs for these other categories should suffice. Our preferred PPPs are used to compare international R&D costs and intensity. The results suggest that the efforts devoted to R&D in each country are more similar across countries than is apparent using the nominal R&D intensities that are currently the norm.
|Date of creation:||Jul 2003|
|Date of revision:||Jun 2006|
|Publication status:||Published in Ernst R. Berndt and Charles M. Hulten (editors), Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches, The University of Chicago Press, Spring 2007.|
|Contact details of provider:|| Postal: |
Phone: (212) 759-0900
Fax: (212) 980-7014
Web page: http://www.conference-board.org/publications/publicationlistall.cfm?sort=type#EconomicWorkingPaper
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David E. Lebow & Jeremy B. Rudd, 2003. "Measurement Error in the Consumer Price Index: Where Do We Stand?," Journal of Economic Literature, American Economic Association, vol. 41(1), pages 159-201, March.
- Charles R. Hulten & Edwin R. Dean & Michael J. Harper, 2001. "New Developments in Productivity Analysis," NBER Books, National Bureau of Economic Research, Inc, number hult01-1, December.
- Gersbach, Hans & Ark, Bart van, 1994. "Micro Foundations for International Productivity Comparisons," GGDC Research Memorandum 199411, Groningen Growth and Development Centre, University of Groningen.
- Van Ark, B. & Gersbach, H., 1994. "Micro Foundations for International Productivity Comparisons," Papers 572, Groningen State, Institute of Economic Research-.
- Danzon, Patricia M. & Chao, Li-Wei, 2000. "Cross-national price differences for pharmaceuticals: how large, and why?," Journal of Health Economics, Elsevier, vol. 19(2), pages 159-195, March.
- Hill, Robert J., 2003. "Constructing price indexes across space and time: the case of the European Union," Research Report 03C20, University of Groningen, Research Institute SOM (Systems, Organisations and Management).
- Heston, Alan & Summers, Robert, 1996. "International Price and Quantity Comparisons: Potentials and Pitfalls," American Economic Review, American Economic Association, vol. 86(2), pages 20-24, May.
- DiMasi, Joseph A. & Hansen, Ronald W. & Grabowski, Henry G., 2003. "The price of innovation: new estimates of drug development costs," Journal of Health Economics, Elsevier, vol. 22(2), pages 151-185, March.
- Hill, Robert J., 2003. "Constructing price indexes across space and time: the case of the European Union," GGDC Research Memorandum 200362, Groningen Growth and Development Centre, University of Groningen.
- Robert H. McGuckin & Bart van Ark & Sean M. Dougherty & Robert Inklaar, 2006. "Appendices to Internationally Comparable Science, Technology and Competitiveness Indicators," Economics Program Working Papers 06-01, The Conference Board, Economics Program.
- Barbara M. Fraumeni & Sumiye Okubo, 2005. "R&D in the National Income and Product Accounts: A First Look at Its Effect on GDP," NBER Chapters, in: Measuring Capital in the New Economy, pages 275-322 National Bureau of Economic Research, Inc.
- MacDonald, A S, 1973. "Exchange Rates for National Expenditure on Research and Development," Economic Journal, Royal Economic Society, vol. 83(330), pages 477-94, June.
- Inklaar, Robert & Wu, Harry & Ark, Bart van, 2003. ""Losing ground" : Japanese labour productivity and unit laboour cost manufacturing in comparison to the U.S," GGDC Research Memorandum 200364, Groningen Growth and Development Centre, University of Groningen.
- Carol Corrado & John Haltiwanger & Dan Sichel, 2005. "Measuring Capital in the New Economy," NBER Books, National Bureau of Economic Research, Inc, number corr05-1, December.
- Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1, December.
- Robert J. Hill, 2004. "Constructing Price Indexes across Space and Time: The Case of the European Union," American Economic Review, American Economic Association, vol. 94(5), pages 1379-1410, December.
- Charles R. Hulten, 2001. "Total Factor Productivity: A Short Biography," NBER Chapters, in: New Developments in Productivity Analysis, pages 1-54 National Bureau of Economic Research, Inc.
- Robert H. McGuckin & Robert Inklaar & Bart van Ark & Sean M. Dougherty, 2004. "The Structure of Business R&D: Recent Trends and Measurement Implications," Economics Program Working Papers 04-01, The Conference Board, Economics Program.
When requesting a correction, please mention this item's handle: RePEc:cnf:wpaper:0303. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (A Ozyildirim)
If references are entirely missing, you can add them using this form.