R&D, Interindustry and International Technology Spillovers and the Total Factor Productivity Growth of Manufacturing Industries in Canada, 1974-1989

The paper presents new econometric evidence on the relationship between total factor productivity growth and the R&D expenditures of Canadian manufacturing industries in the presence of interindustry and international spillovers of technology. In contrast to studies that presume that international spillovers are incorporated in imports of intermediate and/or capital equipment goods, the present paper assumes that the principal channel of transmission of new technology is foreign direct investment. Three original proxies for international spillovers use information on patenting, the size and the origin of foreign ownership in the host country and the R&D expenditures in the country of origin. The results suggest that the nexus between industry's own R&D expenditures and the TFP growth is significant and positive, especially for the process-related R&D. Domestic interindustry spillovers of new technology have a larger effect on TFP than industry's own R&D expenditures. All three proxies for international technology spillovers are associated positively and significantly with TFP growth. However, international spillovers contribute to TFP growth less than domestic interindustry spillovers and less than own process-related R&D.

[1]  R. Welsch,et al.  The Hat Matrix in Regression and ANOVA , 1978 .

[2]  Zvi Griliches,et al.  Issues in Assessing the Contribution of Research and Development to Productivity Growth , 1979 .

[3]  P. Trivedi.  Some Discrete Approximations to Divisia Integral Indices , 1981 .

[4]  Mark Schankerman,et al.  The effects of double-counting and expensing on the measured returns to r&d , 1981 .

[5]  Frederic M. Scherer,et al.  Inter-Industry Technology Flows and Productivity Growth , 1982 .

[6]  Zvi Griliches,et al.  Interindustry Technology Flows and Productivity Growth: A Reexamination , 1984 .

[7]  H. H. Postner,et al.  Canadian productivity growth : an alternative (input-output) analysis , 1985 .

[8]  J. Bernstein.  Costs of Production, Intra- and Interindustry R&D Spillovers: Canadian Evidence , 1988 .

[9]  Z. Griliches.  Patent Statistics as Economic Indicators: a Survey , 1990 .

[10]  P. Reiss.  Detecting multiple outliers with an application to R&D productivity , 1990 .

[11]  G. Grossman,et al.  Innovation and growth in the global economy , 1993 .

[12]  P. Mohnen.  The relationship between R&D and productivity growth in Canada and other major industrialized countries , 1992 .

[13]  Daniele Archibugi,et al.  Patenting as an indicator of technological innovation: a review , 1992 .

[14]  Petr Hanel,et al.  Interindustry Flows of Technology: An Analysis of the Canadian Patent Matrix and Input-Output Matrix for 1978-1989 , 1994 .

[15]  Elhanan Helpman,et al.  International R&D spillovers , 1995 .

[16]  J. Bernstein.  International R&D Spillovers Between Industries in Canada and the United States , 1994 .

[17]  Pierre Mohnen,et al.  International R&D Spillovers between U.S. And Japanese R&D Intensive Sectors , 1994 .

[18]  P. Hanel.  R&D, Inter-Industry and International Spillovers of Technology and the Total Factor Productivity Growth of Manufacturing Industries in Canada, 1974 - 1989 , 1994 .

[19]  Walter G. Park,et al.  INTERNATIONAL R&D SPILLOVERS AND OECD ECONOMIC GROWTH , 1995 .

[20]  Lee G. Branstetter.  Are knowledge spillovers international or intranational in scope? ☆: Microeconometric evidence from the U.S. and Japan , 2001 .

[21]  J. Bernstein.  International R&D Spillovers between Industries in Canada and the United States, Social Rates of Return and Productivity Growth , 1996 .

[22]  Wolfgang Keller,et al.  Trade and the Transmission of Technology , 1997 .

[23]  Bruno van Pottelsberghe de la Potterie,et al.  Issues in assessing the effect of interindustry R&D spillovers , 1997 .

[24]  Bait Verspagen,et al.  Estimating international technology spillovers using technology flow matrices , 1997 .

[25]  Wolfgang Keller,et al.  Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners , 1997 .

[26]  Norihisa Sakurai,et al.  Impact of R&D and Technology Diffusion on Productivity Growth: Empirical Evidence for 10 OECD Countries , 1997 .

[27]  F. Sjöholm,et al.  National and international spillovers from R&D: Comparing a neoclassical and an endogenous growth approach , 1998 .

[28]  Wolfgang Keller,et al.  Are international R&D spillovers trade-related?: Analyzing spillovers among randomly matched trade partners , 1998 .

[29]  A. Kokko,et al.  Multinational Corporations and Spillovers , 1998 .

[30]  Z. Griliches.  Productivity, R&D, and the Data Constraint , 1998 .

[31]  Bruno van Pottelsberghe de la Potterie,et al.  International R&D spillovers: A comment , 1998 .

[32]  J. Baldwin,et al.  Multinationals and the Canadian Innovation Process , 2000 .

[33]  P. Mohnen.  International R&D Spillovers and Economic Growth , 2001 .

[34]  Michele Cincera,et al.  International R&D spillovers: a survey , 2001 .