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Measuring Knowledge Stocks: A Process of Creative Destruction
Author(s) -
Bitzer Jürgen
Publication year - 2005
Publication title -
kyklos
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.766
H-Index - 58
eISSN - 1467-6435
pISSN - 0023-5962
DOI - 10.1111/j.0023-5962.2005.00293.x
Subject(s) - depreciation (economics) , economics , capital (architecture) , production (economics) , process (computing) , knowledge production , monetary economics , econometrics , business , human capital , microeconomics , financial capital , capital formation , computer science , economic growth , knowledge management , geography , operating system , archaeology
Summary This paper proposes a new method for constructing R&D capital stocks developed to avoid the common assumption of a constant rate of knowledge depreciation, which implies wear and tear of knowledge. The method models the development of R&D capital stocks as a process of creative destruction linking the depreciation of knowledge to the emergence of new knowledge. A first empirical assessment of the new method – measuring the influence of R&D capital stocks on production in the manufacturing sectors of 12 OECD countries – produces plausible and robust results.