Modelling the joint impact of R&D and ICT: A frontier analysis approach”, Research Policy

Publication date: 31 Jul 2018 | Publication type: Journal article/book/chapter | Theme: Trade, Investment & Productivity | NIESR Author(s): Venturini, F; Vecchi, M | External Author(s): Pieri, F | Journal: Research Policy No. In press | Publisher: Elsevier, Oxford

performance of industrialized economies. Using a Stochastic Frontier Model (SFM) we estimate the productivity effects of R&D and ICT for a large sample of OECD industries between 1973 and 2007, identifying four channels of transmission: input accumulation, technological change, technical efficiency and spillovers. Our results show that ICT has been particularly effective in reducing production inefficiency and in generating inter-industry spillovers, while R&D has raised the rate of technical change and favoured knowledge spillovers within sectors. We also quantify the contribution of technological investments to output and total factor productivity growth documenting that R&D and ICT accounted for almost 95% of productivity growth in the OECD area.