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Absorptive Capacity and Frontier Technology: Evidence from OECD Manufacturing Industries

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  • Stevens, Phillip Andrew

    (NIESR)

  • Richard Kneller

Abstract

This paper investigates whether differences in absorptive capacity help to explain cross-country differences in the level of productivity. We utilise stochastic frontier analysis to investigate two potential sources of this inefficiency: differences in human capital and R&D for nine industries in twelve OECD countries over the period 1973-92. We find that inefficiency in production does indeed exist and it depends upon the level of human capital of the countryÕs workforce.Evidence that the amount of R&D an industry undertakes is also important is less robust. Classification- JEL: O3, O4

Suggested Citation

  • Stevens, Phillip Andrew & Richard Kneller, 2003. "Absorptive Capacity and Frontier Technology: Evidence from OECD Manufacturing Industries," Royal Economic Society Annual Conference 2003 193, Royal Economic Society.
  • Handle: RePEc:ecj:ac2003:193
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    Cited by:

    1. Richard Harris & John Moffat, 2012. "Total Factor Productivity Growth in Local Economic Partnership Regions in Britain, 1997-2008," SERC Discussion Papers 0112, Spatial Economics Research Centre, LSE.
    2. A. N. Rambaldi & Iyer & K., 2004. "Measuring Spillovers from Alternative Forms of Foreign Investment," Econometric Society 2004 Australasian Meetings 149, Econometric Society.
    3. Ahmed, Elsadig Musa, 2012. "Are the FDI inflow spillover effects on Malaysia's economic growth input driven?," Economic Modelling, Elsevier, vol. 29(4), pages 1498-1504.
    4. Kneller, Richard & Andrew Stevens, Philip, 2003. "The specification of the aggregate production function in the presence of inefficiency," Economics Letters, Elsevier, vol. 81(2), pages 223-226, November.
    5. Paul-Antoine Chevalier & Rémy Lecat & Nicholas Oulton, 2009. "Convergence of Firm-Level Productivity, Globalisation, Information Technology and Competition: Evidence from France," CEP Discussion Papers dp0916, Centre for Economic Performance, LSE.
    6. Michiel Van Dijk & Adam Szirmai, 2005. "Catch Up at the Micro-Level: Evidence from an Industry Case Study Using Manufacturing Census Data," DEGIT Conference Papers c010_038, DEGIT, Dynamics, Economic Growth, and International Trade.

    More about this item

    Keywords

    absorptive capacity; human capital; R&D; SFA;

    JEL classification:

    • 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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