NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Productivity Growth and R&D Expenditure in Taiwan's Manufacturing Firms

Jiann-Chyuan Wang, Kuen-Hung Tsai

NBER Working Paper No. 9724
Issued in May 2003
NBER Program(s):   PR

This study sets out to estimate the impact of R&D on productivity within the private sector, with further analysis of the different impacts of R&D in high-tech and conventional firms. The study also aims to estimate the rates of return on R&D investment and total factor productivity at firm level. Based on a sample of 136 large manufacturing firms listed on the Taiwan Stock Exchange over the period 1994-2000, our findings suggest that Taiwan's R&D investment had a significant impact on firm productivity growth, with output elasticity standing at around 0.18. When the sample is divided into high-tech and conventional firms, the R&D output elasticity in high-tech firms is significantly greater than that of conventional firms. In addition, the average rate of return in high-tech firms is much larger than that estimated in other industries. Our empirical findings further show that although there was a dramatic decline in TFP in 1998 for all selected industries, this nevertheless started to climb again in 1999.

download in pdf format
   (400 K)

email paper

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w9724

Published:

Users who downloaded this paper also downloaded these:
Wang and Tsai Productivity Growth and R&D Expenditure in Taiwan's Manufacturing Firms
Hu and Jaffe w8528 Patent Citations and International Knowledge Flow: The Cases of Korea and Taiwan
Griliches R&D and Productivity: The Unfinished Business
Dougherty, Inklaar, McGuckin, and van Ark w12829 International Comparisons of R&D Expenditure: Does an R&D PPP Make a Difference?
Liu and Chen w10169 International R&D Deployment and Locational Advantage: A Case Study of Taiwan
 
Publications
Activities
Meetings
NBER Videos
Themes
Data
People
About

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

Contact Us