*Associate Professor, Columbia University Graduate School of Business and Research Associate, National Bureau of Economic Research; and ** Assistant Professor, Harriman School for Management and Policy, SUNY-Stony Brook and Faculty Research Fellow, National Bureau of Economic Research. We wish to thank Zvi Griliches, Robert McGuckin, Dennis Mueller, F. M. Scherer, Frank Wykoff, and two anonymous referees for helpful comments and suggestions. Earlier versions of this paper were presented at the National Bureau of Economic Research, the University of Maryland, and the U. S. Census Bureau. This study is based upon activities supported by the National Science Foundation under Interagency Agreement No. SRS-8801036 “Industrial R&D and Productivity: Using an Expanded NSF/Census Data Linkage File.” The research was conducted at the Center for Economic Studies, U. S. Bureau of the Census. Any opinions, findings, and conclusions or recommendations expressed here are those of the authors and do not necessarily reflect the views of the National Science Foundation or the Census Bureau.
THE IMPACT OF R&D INVESTMENT ON PRODUCTIVITY–NEW EVIDENCE USING LINKED R&D–LRD DATA
Article first published online: 28 SEP 2007
Volume 29, Issue 2, pages 203–229, April 1991
How to Cite
Lichtenberg, F. R. and Siegel, D. (1991), THE IMPACT OF R&D INVESTMENT ON PRODUCTIVITY–NEW EVIDENCE USING LINKED R&D–LRD DATA. Economic Inquiry, 29: 203–229. doi: 10.1111/j.1465-7295.1991.tb01267.x
- Issue published online: 28 SEP 2007
- Article first published online: 28 SEP 2007
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.