Griffith, Rachel, Redding, Stephen and Van Reenen, John (2003) R&D and absorptive capacity : theory and empirical evidence. Scandinavian journal of economics, 105 (1). pp. 99-118. ISSN 1467-9442
|
PDF
Download (339Kb) | Preview |
Abstract
This paper presents a single unified framework that integrates the theoretical literature on Schumpeterian endogenous growth and major strands of the empirical literatures on R&D, productivity growth, and productivity convergence. Starting from a structural model of endogenous growth following Aghion and Howitt (1992), (1998), we provide microeconomic foundations for the reduced-form equations for Total Factor Productivity (TFP) growth frequently estimated empirically using industry-level data. R&D affects both innovation and the assimilation of others’ discoveries (‘absorptive capacity’). Long-run cross-country differences in productivity emerge endogenously, and the analysis implies that many existing studies underestimate R&D’s social rate of return by neglecting absorptive capacity.
| Item Type: | Article |
|---|---|
| Official URL: | http://www.blackwellpublishing.com/journals/SJOE |
| Additional Information: | This is an electronic version of an Article published in the Scandinavian Journal of Economics 105(1) pp. 99-118 © 2003 Blackwell Publishing. LSE has developed LSE Research Online so that users may access research output of the School. Copyright © and Moral Rights for the papers on this site are retained by the individual authors and/or other copyright owners. Users may download and/or print one copy of any article(s) in LSE Research Online to facilitate their private study or for non-commercial research. You may not engage in further distribution of the material or use it for any profit-making activities or any commercial gain. You may freely distribute the URL (http://eprints.lse.ac.uk) of the LSE Research Online website. |
| Uncontrolled Keywords: | absorptive capacity, endogenous growth, R&D, total factor productivity (TFP). JEL Classification codes: O10, O30, O47 |
| Library of Congress subject classification: | H Social Sciences > HB Economic Theory |
| Sets: | Collections > Economists Online Research centres and groups > Centre for Economic Performance (CEP) Departments > Economics |
| Rights: | http://www.lse.ac.uk/library/rights/LSERO.htm |
| URL: | http://eprints.lse.ac.uk/209/ |
Actions (login required)
 |
Record administration - authorised staff only |
