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R&D‐induced Growth in the OECD?

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  • Marios Zachariadis

Abstract

The study uses aggregate and manufacturing sector data for a group of ten OECD countries for the period 1971 to 1995 to estimate a system of two equations implied by a model of R&D‐induced growth in steady state. These equations relate R&D intensity to productivity growth and the latter to output growth. The author finds evidence of a positive impact of aggregate R&D intensity on the growth rates of productivity and output. The null hypothesis that growth is not induced by R&D is rejected in favor of the Schumpeterian endogenous growth framework without scale effects. The R&D impact for the aggregate economy is distinctly larger than for the manufacturing sector. Finally, an extension of the empirical model shows that openness has a positive impact on productivity growth.

Suggested Citation

  • Marios Zachariadis, 2004. "R&D‐induced Growth in the OECD?," Review of Development Economics, Wiley Blackwell, vol. 8(3), pages 423-439, August.
    • Handle: RePEc:bla:rdevec:v:8:y:2004:i:3:p:423-439
    DOI: 10.1111/j.1467-9361.2004.00243.x
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