From R&D to Productivity Growth: Do the Institutional Settings and the Source of Funds of R&D Matter?

Abstract

This paper presents estimates of the long-term impact of various sources of knowledge (R&D performed by the business sector, the public sector and foreign firms) on multifactor productivity growth of 16 countries from 1980 to 1998. The main results show that the three sources of knowledge are significant determinants of long term productivity growth. Further evidence suggests that several factors determine the extent to which each source of knowledge contributes to productivity growth. These factors are the absorptive capability, the origin of funding, the socio economic objectives of government support, and the type of public institutions that perform R&D. AbstractThis paper presents estimates of the long-term impact of various sources of knowledge (R&D performed by the business sector, the public sector and foreign firms) on multifactor productivity growth of 16 countries from 1980 to 1998. The main results show that the three sources of knowledge are significant determinants of long term productivity growth. Further evidence suggests that several factors determine the extent to which each source of knowledge contributes to productivity growth. These factors are the absorptive capability, the origin of funding, the socio economic objectives of government support, and the type of public institutions that perform R&D.JEL: O11, O40, O47, O50

Fiscal policy and TFP in the OECD: measuring direct and indirect effects

“…First, public sector R&D is found to be a significant determinant of long-term output. One of the channels through which public R&D affects TFP is through its positive impact on private R&D spending (see among others Guellec and de la Potterie, 2004;Gonzalez and Pazo, 2008). Second, positive effects of education expenditures on productivity and growth are obtained in both theoretical (e.g.…”

CO2 emissions, research and technology transfer in China

“…Largely due to the lack of R&D data for developing countries, almost all previous work on R&D-based growth models has focused only on OECD countries (see, e.g., Zachariadis, 2003;Guellec and De la Potterie, 2004;Ha and Howitt, 2007).…”

Private Donations, Government Grants, Commercial Activities, and Fundraising: Cointegration and Causality for NGOs in International Development Cooperation

“…Consequently, a period of 23 years should be more than sufficient for our purposes. Several panel cointegration studies are based on shorter time periods (see, e.g., Guellec and Van Pottelsberghe, 2004;Apergis et al, 2008;Apergis and Payne, 2011 …”