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An Empirical Contribution to Knowledge Production and Economic Growth

Author

Listed:
  • Kul B. Luintel

    (University of Wales)

  • Mosahid Khan

    (OECD)

Abstract

We examine the dynamics of knowledge production for a panel of 19 OECD countries. A new and unique data set is used to proxy the domestic flows of “new-to-the-world” knowledge and ideas. We rigorously address the cross-country heterogeneity in the production of knowledge and the endogeneous nature of this process. The parameters of the knowledge production function point to large cross-country differences. Domestic and foreign stocks of knowledge and ideas have a net positive effect on the production (flows) of new ideas. Countries with a low domestic knowledge base appear to improve their TFP considerably through the accumulation of knowledge. This effect is very modest for countries that already have a sizeable domestic knowledge base. We find ample evidence of duplicate R&D but no support for endogenous growth. Given the heterogeneous nature of knowledge production across OECD countries, R&D policy will need to be adapted to the specific nature of each country; a one-size-fits-all approach will not be effective. Production de connaissances et croissance économique: Une contribution empririque Cet article examine la dynamique de la production de connaissances dans un échantillon de 19 pays de l’OCDE, au moyen d’un ensemble nouveau et original de données servant à représenter les flux intérieurs de connaissances et données « nouvelles pour le monde entier ». L’hétérogénéité entre pays de la production de connaissances et le caractère endogène du processus sont examinés à la loupe. Les paramètres de la fonction de production de connaissances font ressortir de grandes différences entre les pays. Les stocks intérieurs et étrangers de connaissances et d’idées ont un effet positif net sur la production (les flux) de nouvelles idées. Les pays dotés d’une base de connaissances nationale modeste semblent améliorer considérablement leur PTF par l’accumulation de connaissances. Cet effet est très limité pour les pays qui disposent déjà d’une base de connaissances nationale d’une certaine importance. Les auteurs observent de nombreux éléments montrant une duplication de la R-D, mais aucun signe de croissance endogène. Etant donné le caractère hétérogène de la production de connaissances parmi les pays de l’OCDE, la politique de R-D devra être adaptée aux spécificités de chaque pays ; Il n’existe de formule unique applicable à tous.

Suggested Citation

  • Kul B. Luintel & Mosahid Khan, 2005. "An Empirical Contribution to Knowledge Production and Economic Growth," OECD Science, Technology and Industry Working Papers 2005/10, OECD Publishing.
  • Handle: RePEc:oec:stiaaa:2005/10-en
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    File URL: http://dx.doi.org/10.1787/861778011460
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    More about this item

    Keywords

    dynamic heterogeneity; knowledge stocks; methods of moments;

    JEL classification:

    • C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • 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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