R&D and absorptive capacity: From theory to data

Arbeitspapier

This paper presents a unified model that integrates the theoretical literatue on Schumpeterian endogenous growth, the microeconometric literature on R&D and productivity, and the empirical literature on productivity convergence. Starting from a structural model of endogenous growth following Aghion and Howitt (1992, 1998), we provide microeconomic foundations for a reduced-form equation for Total Factor Productivity (TFP) growth that is commonly used in the empirical literature. We allow a role for R&D in innovation and technology transfer (absorptive capacity). The analysis suggests that many existing studies underestimate R&D's social rate of return and provides an explanation for long-run productivity levels at the industry level.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IFS Working Papers ; No. 01/03

Classification and Topics

• Classification: Wirtschaft ; Economic Development: General ; Innovation; Research and Development; Technological Change; Intellectual Property Rights: General ; Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
• Subject: Absorptive capacity, endogenous growth, R&D, Total Factor Productivity (TFP) ; Neue Wachstumstheorie ; Produktivität ; Industrielle Forschung ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Griffith, Rachel ; Redding, Stephen ; Van Reenen, John
• Event: Veröffentlichung
• (who): Institute for Fiscal Studies (IFS)
• (where): London
• (when): 2000

Further information

• DOI: doi:10.1920/wp.ifs.2001.0103
• Handle: http://hdl.handle.net/10419/71496
• Last update: 10.03.2025, 11:45 AM CET