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Mapping the two faces of R&D : productivity growth in a panel of OECD industries

  • Rachel Griffith
  • Stephen Redding
  • John Van Reenen

Many writers have claimed that research and development (R&D) has two faces. In addition to the conventional role of stimulating innovation, R&D enhances technology transfer (absorptive capacity). We explore this idea empirically using a panel of industries across twelve OECD countries. We find R&D to be statistically and economically important in both technological catch-up and innovation. Human capital also plays an major role in productivity growth, but we only find a small effect of trade. In failing to take account of R&D-based absorptive capacity, existing U.S.-based studies may underestimate the return to R&D. © 2004 President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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File URL: http://eprints.lse.ac.uk/784/
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Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 784.

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Length: 79 pages
Date of creation: May 2000
Date of revision:
Handle: RePEc:ehl:lserod:784
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Web page: http://www.lse.ac.uk/

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