NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Exploring the Relationship Between R&D and Productivity in French Manufacturing Firms

Bronwyn H. Hall, Jacques Mairesse

NBER Working Paper No. 3956 (Also Reprint No. r1962)
Issued in January 1992
NBER Program(s):   PR

This paper uses a newly available dataset on the R&D performance of individual French manufacturing firms for the 1980s to replicate and update a series of studies on French R&D and productivity growth at the firm level during the 1970s. The focus of the paper is on the use of a single dataset to evaluate the robustness of the methods commonly used to measure the private returns to R&D. We investigate the consequences of varying specifications and estimations. and in particular that of using different measures of R&D (knowledge) capital and of double counting corrections. Our main findings are the following: first. having a longer history of R&D expenditures helps in predicting the productivity growth of firms, but the choice of depreciation rate for R&D capital makes little difference to the results. Second, the correction for double counting of R&D expenditures in capital and labor is important and converts a measured "excess" rate of returns to a total rate of return to R&D. Third. we show that the direct production function approach to measuring the returns to R&D capital is preferred on several grounds over the rate of returns variation which has been used in the past. Finally, the productivity, of knowledge capital in the production function is uniformly positive, fairly robust, and correlated with permanent firm or industry effects.

download in pdf format
   (536 K)

download in djvu format
   (301 K)

email paper

This paper is available as PDF (536 K) or DjVu (301 K) (Download viewer) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w3956

Published: Journal of Econometrics, Annals of Econometrics, vol.65, no. 1, pp.263-293, January, 1995 citation courtesy of

Users who downloaded this paper also downloaded these:
Mairesse and Sassenou w3666 R&D Productivity: A Survey of Econometric Studies at the Firm Level
Mairesse and Hall w5501 Estimating the Productivity of Research and Development: An Exploration of GMM Methods Using Data on French & United States Manufacturing Firms
Cuneo and Mairesse w1068 Productivity and R&D at the Firm Level in French Manufacturing
Griliches w1547 Productivity, R&d, and Basic Research at the Firm Level in the 1970s
Griliches and Mairesse w1778 R&D and Productivity Growth: Comparing Japanese and U.S. Manufacturing Firms
 
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