R&D-induced Growth in the OECD?
Article first published online: 5 AUG 2004
Review of Development Economics
Volume 8, Issue 3, pages 423–439, August 2004
How to Cite
Zachariadis, M. (2004), R&D-induced Growth in the OECD?. Review of Development Economics, 8: 423–439. doi: 10.1111/j.1467-9361.2004.00243.x
- Issue published online: 5 AUG 2004
- Article first published online: 5 AUG 2004
The study uses aggregate and manufacturing sector data for a group of ten OECD countries for the period 1971 to 1995 to estimate a system of two equations implied by a model of R&D-induced growth in steady state. These equations relate R&D intensity to productivity growth and the latter to output growth. The author finds evidence of a positive impact of aggregate R&D intensity on the growth rates of productivity and output. The null hypothesis that growth is not induced by R&D is rejected in favor of the Schumpeterian endogenous growth framework without scale effects. The R&D impact for the aggregate economy is distinctly larger than for the manufacturing sector. Finally, an extension of the empirical model shows that openness has a positive impact on productivity growth.