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A Note on The Drivers of R&D Intensity

  • Mathieu, Azèle
  • van Pottelsberghe de la Potterie, Bruno

The objective of this paper is to evaluate the extent to which technological specialization influences the observed R&D intensity of countries. The econometric analysis performed on a cross-country cross-industry panel dataset (21 industrial sectors, 18 countries, from 2001 to 2004) suggests that accounting for the technological specialisation of countries substantially affect the traditional country ranking. The exceptions are Sweden, The United States, France and Japan, which have an ‘above-than-average’ R&D intensity in most industries, as compared to the 14 other countries. The high level of R&D intensity of South Korea and Finland, for instance, is essentially due to their specialisation in R&D-intensive industries, and not to a macroeconomic environment particularly favourable to R&D.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6684.

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Date of creation: Feb 2008
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Handle: RePEc:cpr:ceprdp:6684
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  1. Bruno Van Pottelsberghe & Dominique Guellec, 2003. "The impact of public R&D expenditure on business R&D," ULB Institutional Repository 2013/6213, ULB -- Universite Libre de Bruxelles.
  2. Dominique Guellec & Bruno Van Pottelsberghe de la Potterie, 2004. "From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter?," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(3), pages 353-378, 07.
  3. Bruno Van Pottelsberghe, 2008. "Europe's R&D: Missing the wrong targets?," ULB Institutional Repository 2013/167075, ULB -- Universite Libre de Bruxelles.
  4. Zilibotti, Fabrizio & Aghion, Philippe & Acemoglu, Daron, 2006. "Distance to Frontier, Selection, and Economic Growth," Scholarly Articles 4554122, Harvard University Department of Economics.
  5. Zvi Griliches, 1998. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 17-45 National Bureau of Economic Research, Inc.
  6. Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August.
  7. Martin Falk, 2004. "What Drives Business R&D Intensity Across OECD Countries?," WIFO Working Papers 236, WIFO.
  8. Desmet, Klaus & Parente, Stephen, 2006. "Bigger is Better: Market Size, Demand Elasticity and Resistance to Technology Adoption," CEPR Discussion Papers 5825, C.E.P.R. Discussion Papers.
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