R&D: A Small Contribution to Productivity Growth

摘要: In this article I evaluate the contribution of R&D investments to productivity growth. The basis for analysis are free entry condition and fact that most innovations embodied. Free yields a relationship between resources devoted growth rate technology. Since innovators small, is not directly affected by size externalities, or presence aggregate diminishing returns in after controlling output interest rate. embodiment R&D-driven bounds production externalities. resulting US smaller than 3–5 tenths 1% point. This constitutes an upper bound case where internalize consequences their on cost conducting future innovations. From normative perspective, implies that, if innovation technology takes form assumed literature, actual intensity may be socially optimal.