R&D and Productivity: A Two Way Avenue?

Claudio Bravo-Ortega, Álvaro García Marín

Research output: Contribution to journalArticlepeer-review

74 Scopus citations


Most of the empirical studies assessing the R&D-productivity relationship at the country level fail to consider the possible simultaneity of these variables. Using a 65-country panel for the period between 1965 and 2005, this paper studies the relationship between R&D and productivity using several R&D indicators. We establish that per capita R&D expenditure is strongly exogenous to productivity. This result allows us to develop a further argument that demonstrates the high social returns to R&D spending. Our estimates also indicate that a 10% increase in R&D per capita generates an average increase of about 1.6% in the long-run TFP.

Original languageEnglish
Pages (from-to)1090-1107
Number of pages18
JournalWorld Development
Issue number7
StatePublished - Jul 2011
Externally publishedYes


  • Country panel
  • Economic growth
  • Endogeneity
  • Innovation
  • Productivity


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