Basic, Applied And Experimental Knowledge And Productivity: Further Evidence
Analyzing a novel dataset the authors find significantly positive effects of basic, and applied and experimental knowledge stocks on domestic output and productivity for a panel of 10 OECD countries. This letter updates the work of, among others, Mansfield (1980), Griliches (1986) and Adams (1990), at an international setting. Two types (basic vs. applied and experimental) of knowledge stocks are measured across all players in the R&D sector. Both contribute to domestic output and productivity. The international knowledge spillovers associated with basic R&D, total R&D and business sector R&D appear prominent but those with applied and experimental R&D appear less robust. Evidence is consistent that basic knowledge exerts its effects over a long period.