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Estimating the productivity of research and development : an exploration of GMM methods using data on French and United States manufacturing firms

Author: Jacques Mairesse; Bronwyn H Hall; National Bureau of Economic Research.
Publisher: Cambridge, MA : National Bureau of Economic Research, ©1996.
Series: Working paper series (National Bureau of Economic Research), no. 5501.
Edition/Format:   eBook : Document : EnglishView all editions and formats
Summary:
A comparative study of the contribution of R & D to firm-level productivity in French and United States manufacturing firms in the 1980s is presented. The study uses two large panels of approximately 1000 manufacturing firms covering over half of all R & D spending in each country and focuses on the estimation and interpretation of the relationship between output growth and the growth of R & D investment in the  Read more...
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Material Type: Document, Internet resource
Document Type: Internet Resource, Computer File
All Authors / Contributors: Jacques Mairesse; Bronwyn H Hall; National Bureau of Economic Research.
OCLC Number: 1086624420
Notes: Title from title page image.
"March 1996."
Description: 1 online resource (31 pages) : illustrations
Series Title: Working paper series (National Bureau of Economic Research), no. 5501.
Responsibility: Jacques Mairesse, Bronwyn H. Hall.

Abstract:

A comparative study of the contribution of R & D to firm-level productivity in French and United States manufacturing firms in the 1980s is presented. The study uses two large panels of approximately 1000 manufacturing firms covering over half of all R & D spending in each country and focuses on the estimation and interpretation of the relationship between output growth and the growth of R & D investment in the presence of simultaneity and firm heterogeneity. We use GMM methods to control for both sources of estimation bias, and we find 1) overall, the contribution of R & D to sales productivity growth appears to have declined during the 1980s, and 2) the role of simultaneity bias is higher in the U.S. than in France, possibly reflecting the greater importance of liquidity constraints for R & D investment in that country.

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