Productivity and R&D: an econometric evidence from Spanish firm-level data
Abstract:This article analyses the relationship between productivity growth and R&D investments of Spanish manufacturing firms during the 1990s. The theoretical model is a version of the Cobb-Douglas production function in its growth rate form. The purpose is to estimate the rate of return to R&D expenditures. The econometric specification is a distributed lag model. The estimation applies the generalized method of moments method. The main empirical finding is that a positive and significant role is played by R&D expenditures on productivity growth. The rate of return to R&D expenditures is 26.598%.
Document Type: Research Article
Affiliations: Faculty of Economics and Business Administration, University of Valladolid, Valladolid, Spain
Publication date: 2008-07-01