Sectoral productivity growth and R and D spillovers in the Netherlands

B. Jacobs, R. Nahuis, P.J.G. Tang

Research output: Contribution to JournalArticleAcademicpeer-review

Abstract

This paper assesses empirically whether R&D spillovers are important and whether they originate from domestic or foreign activities. Data for eleven sectors are used to explain the impact on total factor productivity of R&D by the sector itself, by other Dutch sectors and by foreign sectors. We find that both domestic and foreign R&D are significant for the Dutch economy. The elasticity of total factor productivity with respect to R&D is approximately 37% for R&D by a sector, 15% for R&D by other Dutch sectors and 3% for R&D by foreign sectors. Our findings suggest moreover that more R&D speeds up the adoption of foreign technologies. Thus, even for a small open economy as the Netherlands, promoting investment in R&D is appropriate as it both stimulates adoption and generates spillovers.
Original languageEnglish
Pages (from-to)181-210
JournalEconomist
Volume150
Issue number2
DOIs
Publication statusPublished - 2002
Externally publishedYes

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