R&D-induced growth in the OECD?
SourceReview of Development Economics
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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 RandD-induced growth in steady state. These equations relate RandD intensity to productivity growth and the latter to output growth. The author finds evidence of a positive impact of aggregate RandD intensity on the growth rates of productivity and output. The null hypothesis that growth is not induced by RandD is rejected in favor of the Schumpeterian endogenous growth framework without scale effects. The RandD 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. © Blackwell Publishing Ltd 2004.