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Oxford Economic Papers Advance Access originally published online on April 26, 2007
Oxford Economic Papers 2007 59(3):513-535; doi:10.1093/oep/gpl022
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Right arrow L63 - Microelectronics; Computers; Communications Equipment
Right arrow L64 - Other Machinery; Business Equipment; Armaments
Right arrow L65 - Chemicals; Rubber; Drugs; Biotechnology
Right arrow O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology
Right arrow O30 - General
Right arrow O31 - Innovation and Invention: Processes and Incentives
Right arrow O32 - Management of Technological Innovation and R&D
Right arrow O33 - Technological Change: Choices and Consequences; Diffusion Processes
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© Oxford University Press 2007 All rights reserved

R&D, innovation, and growth: evidence from four manufacturing sectors in OECD countries

Hulya Ulku

IDPM, University of Manchester, Manchester, M13 9QH; email: hulya.ulku{at}manchester.ac.uk


  Abstract

This paper provides an empirical analysis of the relationship between R&D intensity, rate of innovation and growth rate of output in four manufacturing sectors from 17 OECD countries. The findings suggest that the knowledge stock is the main determinant of innovation in all four manufacturing sectors and that R&D intensity increases the rate of innovation in the chemicals, electrical and electronics, and drugs and medicine sectors. In addition, the rate of innovation has a positive effect on the growth rate of output in all sectors. These findings lend strong support to non-scale endogenous growth theories.

Key Words: JEL classifications: O14 • O30 • O31 • O33 • O41


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