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International Comparisons of R&D Expenditure: Does an R&D PPP Make a Difference?

Author Info

  • Sean M. Dougherty
  • Robert Inklaar
  • Robert H. McGuckin
  • Bart van Ark

Abstract

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.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 12829.

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Date of creation: Jan 2007
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Publication status: published as International Comparisons of R&D Expenditure: Does an R&D PPP Make a Difference? , Sean M. Dougherty, Robert Inklaar, Robert H. McGuckin, Bart van Ark. in Hard-to-Measure Goods and Services: Essays in Honor of Zvi Griliches , Berndt and Hulten. 2007
Handle: RePEc:nbr:nberwo:12829
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Find related papers by JEL classification:
  • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
  • L16 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Industrial Organization and Macroeconomics; Macroeconomic Industrial Structure
  • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
  • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
  • 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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Cited by:

  1. Stéphane Lhuillery & Julio Raffo & Intan Hamdan-Livramento, 2016. "Measuring creativity: Learning from innovation measurement," WIPO Economic Research Working Papers 31, World Intellectual Property Organization - Economics and Statistics Division.
  2. Sabine Visser, 2007. "R&D in Worldscan," CPB Memorandum 189, CPB Netherlands Bureau for Economic Policy Analysis.
  3. Evers, Lisa & Spengel, Christoph, 2014. "Effective tax rates under IP tax planning," ZEW Discussion Papers 14-111, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  4. Evers, Lisa & Miller, Helen & Spengel, Christoph, 2013. "Intellectual property box regimes: Effective tax rates and tax policy considerations," ZEW Discussion Papers 13-070, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  5. Jakob B. Madsen & EPRU & FRU, 2007. "Semi-Endogenous Versus Schumpeterian Growth Models: Testing The Knowledge Production Function Using International Data," Monash Economics Working Papers 26-07, Monash University, Department of Economics.
  6. 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.
  7. Richard M. H. Suen, 2013. "Research Policy and U.S. Economic Growth," Working papers 2013-18, University of Connecticut, Department of Economics.
  8. Gersbach, Hans & Schetter, Ulrich & Schneider, Maik, 2015. "How Much Science? The 5 Ws (and 1 H) of Investing in Basic Research," CEPR Discussion Papers 10482, C.E.P.R. Discussion Papers.

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