Working Paper: NBER ID: w15622
Authors: Bronwyn H. Hall; Jacques Mairesse; Pierre Mohnen
Abstract: We review the econometric literature on measuring the returns to R&D. The theoretical frameworks that have been used are outlined, followed by an extensive discussion of measurement and econometric issues that arise when estimating the models. We then provide a series of tables summarizing the major results that have been obtained and conclude with a presentation of R&D spillover returns measurement. In general, the private returns to R&D are strongly positive and somewhat higher than those for ordinary capital, while the social returns are even higher, although variable and imprecisely measured in many cases.
Keywords: R&D; returns; innovation; econometrics; productivity
JEL Codes: O3
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| R&D investment (O32) | productivity growth (O49) |
| private returns to R&D (O39) | productivity growth (O49) |
| social returns to R&D (O39) | productivity growth (O49) |
| R&D spillovers (O36) | productivity growth in other firms (O49) |