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Technological Opportunity and Productivity of R&D Activities

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  • Michael Fung

Abstract

Economists have managed to find a positive impact of R&D efforts on productivity. However, the empirical results of their studies have not explained the observed sectoral differences in this important impact. With due reference to three global industries, namely, chemical, computer, and electrical/electronic, the objective of this study is to evaluate the impact of technological opportunity on the productivity of R&D activities. Technological opportunity refers to the ease of achievement of innovations and technical improvements, which could be jointly represented by the intensities of knowledge spillovers, inter-firm research overlap and scope of research. In this study, the degree of technological opportunity is quantified by patent statistics. The empirical findings confirm a positive relationship between technological opportunity and the productivity of R&D effort, and the estimated rate of return falls within the range as reported by past studies. Copyright Kluwer Academic Publishers 2004

Suggested Citation

  • Michael Fung, 2004. "Technological Opportunity and Productivity of R&D Activities," Journal of Productivity Analysis, Springer, vol. 21(2), pages 167-181, March.
    • Handle: RePEc:kap:jproda:v:21:y:2004:i:2:p:167-181
    DOI: 10.1023/B:PROD.0000016871.95892.41
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    2. Hu, Mei-Chih & Kang, Jin-Su & Wu, Ching-Yan, 2017. "Determinants of profiting from innovation activities: Comparisons between technological leaders and latecomers," Technological Forecasting and Social Change, Elsevier, vol. 116(C), pages 223-236.
    3. David Grover, 2012. "Do market-based instruments really induce more environmental R&D? A test using US panel data," GRI Working Papers 98, Grantham Research Institute on Climate Change and the Environment.
    4. Yoon, Byungun & Park, Inchae & Coh, Byoung-youl, 2014. "Exploring technological opportunities by linking technology and products: Application of morphology analysis and text mining," Technological Forecasting and Social Change, Elsevier, vol. 86(C), pages 287-303.

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