Role of heterogeneous research and development funds in the productivity of the US manufacturing industry
This paper investigates, in the framework of firm's optimal behavior, the effect of company-funded and federally-funded RandD on productivity in selected US industries. Especially, the role of federal funding RandD in productivity through direct as well as indirect mechanisms is analyzed. Using different model specification, two types of RandD-federal and company, and data of industry level, no support can be found for the blanket statement that federally-funded RandD (FRD) crowds out or pulls in company-funding RandD in productivity growth. Whether crowding-out or pulling-in is shown to be industry-specific as well as based on FRD's time dimension. Hence, the lag effect of heterogeneous RandD funds on productivity is emphasized. The classification of heterogeneous RandD funds into basic research, applied research, and development is adopted to look at the impact of each on productivity. The model of firm's optimal behavior following such classification demonstrates that federally-funded basic research has a tremendous pulling-in impact on company-funded applied research and development, respectively.
- Research Organization:
- Illinois Univ., Urbana (USA)
- OSTI ID:
- 7035815
- Resource Relation:
- Other Information: Thesis (Ph. D.)
- Country of Publication:
- United States
- Language:
- English
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