R&ampD and Productivity Growth

         This study investigates the long-term effects of various types of R&ampD on multifactor productivity growth, which is the spillover effect of R&ampD. Econometric estimates are conducted on a panel of 16 OECD countries, over the period 1980-98. All results are averages over countries and time, and little can be said about country specificities.         Major results are as follows: an increase of 1% in business R&ampD generates 0.13% in productivity growth. The effect is larger in countries which are intensive in business R&ampD, and in countries where the share of defence-related government funding is lower a 1% increase in foreign R&ampD generates 0.44% in productivity growth, and the effect is larger in countries intensive in business R&ampD 1% more in public R&ampD generates 0.17% in productivity growth. The effect is larger in countries where the share of universities (as opposed to government labs) is higher, in countries where the share of defence is lower, and in countries which are intensive in business ...      

OECD Science, Technology and Industry Working Papers

R&ampD and Productivity Growth

Panel Data Analysis of 16 OECD Countries