R&D and productivity in 16 OECD countries: some heterogeneous panel estimations

Abstract

This study further investigates the long-run impact of various sources of technological progress on productivity for a panel of 16 OECD countries during the period 1981 to 1998. Given the length of the series, the application of an heterogeneous estimator could be suitable from an econometric point of view. Our results, based on the Mean Group and the Pooled Mean Group estimators, show that technology spills over across countries through the channel of trade flows and that academic research significantly contributes to productivity.

Notes

¹ Australia, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Iceland, Italy, Japan, Netherlands, Norway, Spain, UK and USA.

² This weighting scheme used to compute foreign R&D capital stock is theoretically much less biased than the one adopted by Coe and Helpman.