eprintid: 14568
rev_number: 8
eprint_status: archive
userid: 353
dir: disk0/00/01/45/68
datestamp: 2017-05-08 07:26:25
lastmod: 2021-08-27 17:41:51
status_changed: 2017-05-08 07:26:25
type: article
metadata_visibility: show
creators_name: Smeets Kristkova, Z.
creators_name: Gardebroek, C.
creators_name: van Dijk, M.
creators_name: van Meijl, H.
creators_id: 2147
title: The impact of R&D on factor-augmenting technical change – an empirical assessment at the sector level
ispublished: pub
divisions: prog_esm
keywords: Factor-augmenting technical change, R&D, CES function, GMM regression
abstract: The aim of the paper is to quantify endogenous factor-augmenting technical change driven by R&D investments in a panel of 11 OECD countries over 1987–2007. This paper contributes to the scant empirical evidence on the speed, sources and direction of technical change for various sectors and production factors. Assuming cost-minimization behavior, a CES framework is used to derive a system of equations that is estimated by a GMM system estimator. The estimated factor-augmenting technology parameters show that in most sectors, technical change was labor-augmenting and labor-saving. Statistically significant effects of manufacturing and services R&D were found on factor-augmenting technical change (with the highest R&D elasticities found in the high-tech manufacturing and transport, storage and communication sectors). Whereas ‘in-house’ R&D stimulates total factor productivity, R&D spilled over to other sectors has a capital-augmenting effect accompanied by a higher use of labor. The results of this study provide a starting point for incorporating endogenous factor-augmenting technical change in impact assessment models aimed at broad policy analysis including economic growth, food security or climate change.
date: 2017-05-06
date_type: published
publisher: Taylor & Francis
id_number: 10.1080/09535314.2017.1316707
creators_browse_id: 2911
full_text_status: public
publication: Economic Systems Research
pagerange: 1-33
refereed: TRUE
issn: 0953-5314
coversheets_dirty: FALSE
fp7_project: no
fp7_type: info:eu-repo/semantics/article
citation:   Smeets Kristkova, Z., Gardebroek, C., van Dijk, M. <https://pure.iiasa.ac.at/view/iiasa/2911.html>, & van Meijl, H.  (2017).  The impact of R&D on factor-augmenting technical change – an empirical assessment at the sector level.   Economic Systems Research 1-33. 10.1080/09535314.2017.1316707 <https://doi.org/10.1080/09535314.2017.1316707>.       
document_url: https://pure.iiasa.ac.at/id/eprint/14568/1/The%20impact%20of%20R%20D%20on%20factor%20augmenting%20technical%20change%20an%20empirical%20assessment%20at%20the%20sector%20level.pdf