Estimating the Productivity of Research and Development: An Exploration of GMM Methods Using Data on French & United States Manufacturing Firms / Jacques Mairesse, Bronwyn H. Hall.

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Mairesse, Jacques

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Material type: Text

TextSeries: Working Paper Series (National Bureau of Economic Research) ; no. w5501.Publication details: Cambridge, Mass. National Bureau of Economic Research 1996.Description: 1 online resource: illustrations (black and white)Online resources:

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Abstract: A comparative study of the contribution of R&D to firm-level productivity in French and United States manufacturing firms in the 1980s is presented. The study uses two large panels of approximately 1000 manufacturing firms covering over half of all R&D spending in each country and focuses on the estimation and interpretation of the relationship between output growth and the growth of R&D investment in the presence of simultaneity and firm heterogeneity. We use GMM methods to control for both sources of estimation bias, and we find 1) overall, the contribution of R&D to sales productivity growth appears to have declined during the 1980s, and 2) the role of simultaneity bias is higher in the U.S. than in France, possibly reflecting the greater importance of liquidity constraints for R&D investment in that country.

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Item type	Home library	Collection	Call number	Status	Date due	Barcode	Item holds
Working Paper	Biblioteca Digital	Colección NBER	nber w5501 (Browse shelf(Opens below))	Not For Loan

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Previous	nber w5498 Pricing Strategy and Financial Policy /	nber w5499 Cash Flow and Investment: Evidence from Internal Capital Markets /	nber w5500 Implied Volatility Functions: Empirical Tests /	nber w5501 Estimating the Productivity of Research and Development: An Exploration of GMM Methods Using Data on French & United States Manufacturing Firms /	nber w5502 Reflections on Ricardian Equivalence /	nber w5503 Labor Productivity: Structural Change and Cyclical Dynamics /	nber w5504 Adoption of Financial Technologies: Implications for Money Demand and Monetary Policy /	Next

March 1996.

A comparative study of the contribution of R&D to firm-level productivity in French and United States manufacturing firms in the 1980s is presented. The study uses two large panels of approximately 1000 manufacturing firms covering over half of all R&D spending in each country and focuses on the estimation and interpretation of the relationship between output growth and the growth of R&D investment in the presence of simultaneity and firm heterogeneity. We use GMM methods to control for both sources of estimation bias, and we find 1) overall, the contribution of R&D to sales productivity growth appears to have declined during the 1980s, and 2) the role of simultaneity bias is higher in the U.S. than in France, possibly reflecting the greater importance of liquidity constraints for R&D investment in that country.