Modeling R&D spillovers to productivity: The effects of tax policy

Arbeitspapier

We study the role of R&D spillovers when modelling total factor productivity (TFP) by industry. Using Norwegian industry level data, we find that for many industries there are significant spillovers from both domestic sources and from technological change at the international frontier. International spillovers contributed with 38 per cent to the total growth in TFP from 1982 to 2018 while domestic channels contributed with 44 per cent. The remaining 18 per cent is due to interaction effects. We include these channels into a large-scale econometric model of the Norwegian economy to study how R&D policies can promote economic growth. We find that current R&D policies in the form of generous tax deductions have increased growth in productivity and income in the Norwegian economy. The simulation results lend some support to the view that there are fiscal policy instruments that may have very large multipliers, even in the case of a fully financed policy change.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Discussion Papers ; No. 927

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Model Construction and Estimation ; Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity ; General Aggregative Models: Forecasting and Simulation: Models and Applications ; Management of Technological Innovation and R&D
• Subject: R&D spillovers ; total factor productivity ; innovation policies

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Thomas von Brasch ; Cappelen, Ådne ; Hungnes, Håvard ; Skjerpen, Terje
• Event: Veröffentlichung
• (who): Statistics Norway, Research Department
• (where): Oslo
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/249117
• Last update: 10.03.2025, 11:44 AM CET