Measuring the Returns to R&D

By Bronwyn H Hall, Jacques Mairesse, Pierre Mohnen. Social Science Research Network, 2010

960 citations recorded by the source corpus.

We review the econometric literature on measuring the returns to R&D. The theoretical frameworks that have been used are outlined, followed by an extensive discussion of measurement and econometric issues that arise when estimating the models. We then provide a series of tables summarizing the major results that have been obtained and conclude with a presentation of R&D spillover returns measurement. In general, the private returns to R&D are strongly positive and somewhat higher than those for ordinary capital, while the social returns are even higher, although variable and imprecisely measured in many cases.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/6c7391b1a4afef48ccfd21626efb0816100bfd07

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

Citations in the corpus

The effect of institutional ownership on firm innovation: Evidence from Chinese listed firms (2017, background): “17 These two rates are regarded as the standards in the literature (Hall et al., 2009).”
R&D and Productivity: Estimating Endogenous Productivity (2013, methodology): “While the knowledge capital model has been used in hundreds of studies on firm-level productivity, the underlying empirical strategy has changed little over the years (see the surveys by Mairesse and Sassenou (1991), Griliches (1995, 2000), and Hall et al. (2010)).”
Inverted-U relationship between R&D intensity and survival : evidence on scale and complementarity effects in UK data. (2016, background): “This cenario, however, is unrealistic given the extensive evidence that nowledge capital measured as R&D capital stock has a positive ffect on productivity−see Griliches (1979) on theoretical and meaurement issues, and Hall et al. (2010) and Ugur et al. (2015) for eviews.”
What promotes R&D? Comparative evidence from around the world (2017, background): “5 A non-exhaustive list of recent studies on other national and organizational determinants of R&D and innovation includes Acharya and Subramanian (2009), Manso (2011), Hillier et al. (2011), Brown and Floros (2012), Atanassov (2013), Ederer and Manso (2013), He and Tian (2013), Aghion, Howitt, and ”
Do tax incentives for research increase firm innovation? An RD design for R&D (2016, neutral): “(1998), Harhoff et al. (2003), Squicciarini et al.”
Entrepreneurial orientation and firm performance: the mediating role of functional performances (2018, background): “A good performing R&D function can increase the production quality and decrease production costs (Hall et al., 2010).”
Assessing the Energy-Efficiency Gap (2017, neutral): “…efficiency,14 but there is substantial evidence of these spillovers in other industries, with empirical estimates of such spillovers ranging from close to zero percent to 100 percent, with most estimates between 20 and 50 percent (Griliches 1992, S43; B. H. Hall, Mairesse, and Mohnen 2010, 1070–1).”
Sources of Spillovers for Imitation and Innovation (2014, neutral): “This measure has been used to capture spillovers within industries by scholars who estimated production functions (see Hall et al., 2010, for an overview).”