Otto, Vincent M. Kuosmanen, Timo van Ierland, Ekko C.
Year of Publication:
Nota di Lavoro, Fondazione Eni Enrico Mattei 27.2006
This study examines whether todays technical change depends on yesterdays technical change. We propose to investigate this feedback effect by using the technical-change component of the Malmquist productivity index. This approach can overcome some problems in alternative patent-citation approaches. We apply the approach by estimating the feedback effect from production data of 25 OECD countries for 1980 through 1997. Our model yields evidence on a positive feedback effect with delays up till eight years. These findings are in line with patent-citation studies and bring us closer to a measure of the social returns to R&D.
Cross-country comparisons Data envelopment analysis (DEA) Feedback effect Malmquist productivity index Technical change Two-stage semiparametric estimation