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R&D Intensity, Technology Transfer and Absorptive Capacity

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  • Md. Rabiul Islam

Abstract

In the line of Schumpeterian fully endogenous growth theory, this study attempts to investigate whether differences in research intensity as well as absorptive capacity help to explain cross-country differences in productivity growth in a panel of 55 sample countries including 23 OECD and 32 developing economies over the period 1970 to 2004. Using several indicators of innovative activity and product variety empirical results from system GMM estimator confirm that research intensity has significant positive effect on productivity growth in both the OECD and developing countries. TFP growth is also found to be enhanced by the distance to technology frontier in both the group of countries. R&D based absorptive capacity seems to have significant positive impact on productivity growth in both the groups though strong in OECD countries. Human capital based technology transfer is found significant and robust in both the OECD and developing countries. Absorptive capacity appears to be sensitive to the model specification and measurement of innovative activity as well as product variety.

Suggested Citation

  • Md. Rabiul Islam, 2009. "R&D Intensity, Technology Transfer and Absorptive Capacity," Monash Economics Working Papers 13-09, Monash University, Department of Economics.
  • Handle: RePEc:mos:moswps:2009-13
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    2. Joachim Heinzl & Ah-Lian Kor & Graham Orange & Hans Kaufmann, 2013. "Technology transfer model for Austrian higher education institutions," The Journal of Technology Transfer, Springer, vol. 38(5), pages 607-640, October.

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    More about this item

    Keywords

    Schumpeterian growth theory; R&D intensity; TFP growth; technology transfer; human capital; absorptive capacity; system GMM; OECD; developing countries;
    All these keywords.

    JEL classification:

    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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