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Does federally financed business R&D matter for US productivity growth?

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This paper investigates the impact of federally financed business R&D on productivity of the US nonfarm business sector. Results of a cointegration analysis suggest that a long run relation between productivity and total (privately and federally financed) R&D capital stock exists. Moreover, the estimation results do not confirm the finding of previous empirical studies that the productivity effects of federally financed business R&D are lower compared with those of privately financed business R&D.
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Document Type: Research Article

Affiliations: Universität Hamburg, Institut für Allokation and Wettbewerb, Von-Melle-Park 5, D-20146 Hamburg, Germany, Email: [email protected]

Publication date: 2003-10-15

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