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THE IMPACT OF R&D INVESTMENT ON PRODUCTIVITY–NEW EVIDENCE USING LINKED R&D–LRD DATA
Author(s) -
Lichtenberg Frank R.,
Siegel Donald
Publication year - 1991
Publication title -
economic inquiry
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.823
H-Index - 72
eISSN - 1465-7295
pISSN - 0095-2583
DOI - 10.1111/j.1465-7295.1991.tb01267.x
Subject(s) - microdata (statistics) , economics , productivity , investment (military) , rate of return , econometrics , census , finance , population , politics , political science , law , macroeconomics , demography , sociology
This paper uses confidential Census longitudinal microdata to examine the association between R&D and productivity for the period 1972–1985. These data allow for significant improvements in measurement and model specification, yielding more precise estimates of the returns to R&D. Our results confirm the findings of existing studies: 1) positive returns to R&D investment 2) higher returns to company‐financed research 3) a productivity “premium” on basic research These results are robust to adjustments for “influential outliers.” Also, our evidence suggests that the return to company‐financed R&D is an increasing function of firm size.