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Estimating Feedback Effect in Technical Change: A Frontier Approach

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  • Otto, Vincent M.
  • Kuosmanen, Timo
  • van Ierland, Ekko C.

Abstract

This study examines whether today's technical change depends on yesterday's technical change. We propose to investigate this feedback effect by using the technical-change component of the Malmquist productivity index. This approach can overcome some problems in alternative patent-citation approaches. We apply the approach by estimating the feedback effect from production data of 25 OECD countries for 1980 through 1997. Our model yields evidence on a positive feedback effect with delays up till eight years. These findings are in line with patent-citation studies and bring us closer to a measure of the social returns to R&D.

Suggested Citation

  • Otto, Vincent M. & Kuosmanen, Timo & van Ierland, Ekko C., 2006. "Estimating Feedback Effect in Technical Change: A Frontier Approach," Knowledge, Technology, Human Capital Working Papers 12086, Fondazione Eni Enrico Mattei (FEEM).
    • Handle: RePEc:ags:feemkt:12086
    DOI: 10.22004/ag.econ.12086
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    Cited by:

    1. Andreas Löschel & Vincent M. Otto, 2007. "Technology Shocks and Directed Environmental Policy - The Case of CO2 Capture and Storage," Energy and Environmental Modeling 2007 24000034, EcoMod.

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    More about this item

    Keywords

    Research and Development/Tech Change/Emerging Technologies;

    JEL classification:

    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity

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