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Has New Zealand benefited from its investments in research & development?

  • Robin Johnson

    (Consultancy)

  • W A Razzak

    (Department of Labour)

  • Steve Stillman

    (Motu Economic and Public Policy Research)

We use panel data for nine industries to evaluate research and development (R&D) investments in New Zealand over the past forty years. We estimate the impact of R&D stocks in a particular industry on output per person in that industry and on output per person in the rest of the economy. We examine both public and private R&D investments. Privately provided R&D has a statistically significant positive impact on own- industry output per person, suggesting it increases productivity. However, publicly provided R&D has no impact on own-industry output per person. There is also evidence that private R&D in certain industries positively affects output per person in the rest of the economy, i.e. it generates positive spillovers. There is no evidence of positive spillovers from publicly provided R&D.

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File URL: http://econwpa.repec.org/eps/dev/papers/0510/0510022.pdf
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Paper provided by EconWPA in its series Development and Comp Systems with number 0510022.

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Length: 23 pages
Date of creation: 31 Oct 2005
Date of revision:
Handle: RePEc:wpa:wuwpdc:0510022
Note: Type of Document - pdf; pages: 23
Contact details of provider: Web page: http://econwpa.repec.org

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