Productivity growth, environmental regulations and the composition of R&D.

UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
Albert N. Link, Professor (Creator)
Institution
The University of North Carolina at Greensboro (UNCG )
Web Site: http://library.uncg.edu/

Abstract: The average annual rate of productivity growth in the United States has fallen since the mid-1960s. One factor often cited for this trend is the slowdown in the level of R&D spending. In considering this factor, many researchers have examined the correlation between productivity growth and R&D spending and found that it was positive through the 1960s but near zero in the 1970s. This latter result has raised the question as to whether the productivity of R&D has collapsed. Evidence is presented in this article that the collapse of R&D in empirical productivity equations is conceptually misleading because a significant portion of R&D was directed in the 1970s toward compliance with environmental regulations. These expenditures appear to be negatively related to measured productivity growth.

Additional Information

Publication
Language: English
Date: 1982
Keywords
productivity growth, research and development, R&D spending, R&D investment, product research, research expenditure

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