Productivity measurement, R&D assets and mark-ups in OECD countries

Abstract

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Effects of R&D and Capital Expenditure on Firm Performance: Evidence from Technology Hardware and Equipment Sector

“…Different rates of depreciations were applied to R&D intensity and capital intensity; more specifically 30% for R&D intensity and 20% for capital intensity. OEDC Productivity Database uses a fixed 10-year service life for R&D expenditures, which corresponds to a 20% annual depreciation rate (Schreyer and Zinni, 2018), however, empirical sector specific analysis reports varying but higher depreciation rates for THE sector (Hall, 2007;Warusawitharana, 2015). A more recent study by Li and Hall (2016) reports R&D expenditure depreciation rates close to 30% on average for THE.…”