Corporate R&D and productivity in Germany and the United Kingdom

Bond, Stephen, Harhoff, Dietmar and Van Reenen, John (2003) Corporate R&D and productivity in Germany and the United Kingdom. 599. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Abstract

This paper analyzes differences in R&D spending and in the impact of R&D on productivity between German and UK firms. We confirm that German firms spend significantly larger amounts on R&D than their UK counterparts, even after controlling for firm size and industry effects. Using a dynamic production function approach, we find that the R&D output elasticity is approximately the same in both countries, implying a much larger rate of return on R&D in the UK than in Germany. We discuss several explanations for this result.

Item Type:	Monograph (Discussion Paper)
Official URL:	http://cep.lse.ac.uk
Additional Information:	© 2003 S. Bond, D. Harhoff and J. Van Reenen
Uncontrolled Keywords:	Corporate governance, R&D, productivity, financial constraints, panel data.
Library of Congress subject classification:	H Social Sciences > HB Economic Theory
Journal of Economic Literature Classification System:	L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L13 - Oligopoly and Other Imperfect Markets C - Mathematical and Quantitative Methods > C2 - Econometric Methods: Single Equation Models; Single Variables > C25 - Discrete Regression and Qualitative Choice Models O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development > O31 - Innovation and Invention: Processes and Incentives
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
Identification Number:	599
URL:	http://eprints.lse.ac.uk/770/

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