Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249117 
Year of Publication: 
2020
Series/Report no.: 
Discussion Papers No. 927
Publisher: 
Statistics Norway, Research Department, Oslo
Abstract: 
We study the role of R&D spillovers when modelling total factor productivity (TFP) by industry. Using Norwegian industry level data, we find that for many industries there are significant spillovers from both domestic sources and from technological change at the international frontier. International spillovers contributed with 38 per cent to the total growth in TFP from 1982 to 2018 while domestic channels contributed with 44 per cent. The remaining 18 per cent is due to interaction effects. We include these channels into a large-scale econometric model of the Norwegian economy to study how R&D policies can promote economic growth. We find that current R&D policies in the form of generous tax deductions have increased growth in productivity and income in the Norwegian economy. The simulation results lend some support to the view that there are fiscal policy instruments that may have very large multipliers, even in the case of a fully financed policy change.
Subjects: 
R&D spillovers
total factor productivity
innovation policies
JEL: 
C32
C51
D24
E17
O32
Document Type: 
Working Paper

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