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Innovation, International Technological Diffusion and the Changing Influence of R&D on Productivity

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  • Frantzen, Dirk

Abstract

This paper analyses the relationship between OECD countries' business sector total factor productivity and domestic and foreign R&D efforts during the period 1961-91. A sensitivity analysis is performed by making use of alternate estimations of specifications in growth terms and in level terms. The results are shown to be robust. They show that the influence of international technological diffusion is, on average, substantially stronger than that of domestic R&D. In the case of the large economies, however, the latter influence is found to be more important. A structural stability analysis provides evidence of a decrease in the estimates in the mid-1970s, without significant recovery afterwards. Various long-run supply effects appear to have contributed. The discontinuous nature of the reduction does indicate, however, that these were reinforced by macroeconomic disturbances at the demand side. Copyright 2000 by Oxford University Press.

Suggested Citation

  • Frantzen, Dirk, 2000. "Innovation, International Technological Diffusion and the Changing Influence of R&D on Productivity," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 24(2), pages 193-210, March.
    • Handle: RePEc:oup:cambje:v:24:y:2000:i:2:p:193-210
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    Cited by:

    1. Eric Bartelsman & Andrea Bassanini & John Haltiwanger & Ron Jarmin & Stefano Scarpetta & Thorsten Schank, 2002. "The Spread of ICT and Productivity Growth: Is Europe Really Lagging Behind in the New Economy?," CEPN Working Papers halshs-00289168, HAL.
    2. Jonathan Perraton, 2019. "The scope and implications of globalisation," Chapters, in: Jonathan Michie (ed.), The Handbook of Globalisation, Third Edition, chapter 3, pages 50-76, Edward Elgar Publishing.
    3. Juana Sanchez, 2014. "Innovation Output Choices And Characteristics Of Firms In The U.S," Working Papers 14-42, Center for Economic Studies, U.S. Census Bureau.
    4. Constantine Manasakis & Emmanuel Petrakis, 2009. "Union structure and firms' incentives for cooperative R&D investments," Canadian Journal of Economics, Canadian Economics Association, vol. 42(2), pages 665-693, May.
    5. Krzysztof WASNIEWSKI, 2017. "Technological change as intelligent, energy-maximizing adaptation," Journal of Economic and Social Thought, KSP Journals, vol. 4(3), pages 263-276, Seprember.
    6. Ríos Bolívar Humberto & Marroquín Arreola Juan, 2013. "Innovación tecnológica como mecanismo para impulsar el crecimiento económico. Evidencia regional para México," Contaduría y Administración, Accounting and Management, vol. 58(3), pages 11-37, julio-sep.
    7. Dion, David-Pascal, 2004. "Regional integration and economic development: An empirical approach," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 21, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    8. Frantzen D., 2002. "R&D Spillovers and Scale Effects," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 222(6), pages 727-749, December.
    9. López-Pueyo, Carmen & Barcenilla-Visús, Sara & Sanaú, Jaime, 2008. "International R&D spillovers and manufacturing productivity: A panel data analysis," Structural Change and Economic Dynamics, Elsevier, vol. 19(2), pages 152-172, June.
    10. Francesco Quatraro, 2009. "Innovation, structural change and productivity growth: evidence from Italian regions, 1980--2003," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 33(5), pages 1001-1022, September.
    11. Juana Sanchez, 2014. "Non-technological and Mixed Modes of Innovation in the United States. Evidence from the Business Research and Development and Innovation Survey, 2008-2011," Working Papers 14-35, Center for Economic Studies, U.S. Census Bureau.
    12. Wang, Cong & Lu, Yifan, 2020. "Can economic structural change and transition explain cross-country differences in innovative activity?," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    13. Chien‐Chiang Lee & Chi‐Chuan Lee & Chih‐Yang Cheng, 2022. "The impact of FDI on income inequality: Evidence from the perspective of financial development," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 137-157, January.
    14. Tânia Pinto & Aurora Teixeira, 2023. "Does scientific research output matter for Portugal’s economic growth?," GEE Papers 0174, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2023.
    15. Devarajan, Shantayanan & Go, Delfin S. & Robinson, Sherman & Thierfelder, Karen, 2009. "Tax Policy and Carbon Emissions in South Africa," Conference papers 331869, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Tânia Pinto & Aurora A. C. Teixeira, 2020. "The impact of research output on economic growth by fields of science: a dynamic panel data analysis, 1980–2016," Scientometrics, Springer;Akadémiai Kiadó, vol. 123(2), pages 945-978, May.

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