NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Product Demand, Cost of Production, Spillovers, and the Social Rate of Return to R&D

Jeffrey I. Bernstein, M. Ishaq Nadiri

NBER Working Paper No. 3625
Issued in February 1991
NBER Program(s):   PR

The purpose of this paper is to develop and estimate a model of production with endogenous technological change. Technological change arises from R&D capital accumulation decisions. These decisions respond to market and government incentives and generate R&D capital spillovers. A spillover network of senders and receivers is estimated. The network shows that each receiving industry is affected by a distinct set of R&D sources and each sending industry affects a unique set of receivers. For the receivers, spillovers generally expand product markets, lower product prices, increase production costs and input demands. For the sources, significant R&D spillovers cause the social rates of return to R&D capital to be substantially above the private returns.

download in pdf format
   (291 K)

email paper

This paper is available as PDF (291 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w3625

Users who downloaded this paper also downloaded these:
Bernstein and Nadiri w2554 Interindustry R&D Spillovers, Rates Of Return, and Production In High-Tech Industries
Levin and Reiss w2876 Cost-Reducing and Demand-Creating R&D With Spillovers
Nadiri w4423 Innovations and Technological Spillovers
Nadiri and Mamuneas w3887 The Effects of Public Infrastructure and R&D Capital on the Cost Structure and Performance of U.S. Manufacturing Industries
Bernstein and Nadiri w2570 Rates Of Return On Physical And R&D Capital And Structure Of The Production Process: Cross Section And Time Series Evidence
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us