Abstract
R&D is generally modeled as a stock of knowledge resulting from the accumulation of past R&D expenditure that enters as a factor of production in an extended production function. It can also be seen as an input in a production function of knowledge whose output can be measured by patents, new products or new processes. R&D then affects productivity in an indirect way increasing the choice or the quality of products. R&D can also be conceived as attempts to improve technologies and productivity with an uncertainty rate of success. Returns to R&D may vary depending on the sectors, the level of development, and the opportunity factor. Econometric estimates may depend on whether they are based on cross-sectional or time-series variation in the data. R&D can generate spillover effects by creating or destroying economic rents elsewhere in the economy or by transmitting knowledge to other firms. R&D spillovers play an essential role in endogenous growth models.
Original language | English |
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Title of host publication | Elgar Encyclopedia on the Economics of Knowledge and Innovation |
Editors | Christiano Antonelli |
Place of Publication | Cheltenham |
Publisher | Edward Elgar Publishing |
Chapter | 53 |
Pages | 425-430 |
Number of pages | 6 |
ISBN (Electronic) | 9781839106996 |
ISBN (Print) | 9781839106989 |
DOIs | |
Publication status | Published - 14 Oct 2022 |