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Abstract

Many aspects of the economics of research have been discussed ably in a number of recent books and articles and will not be resurveyed here.2 I shall concentrate instead on a relatively limited topic, the possible contribution of public and private research expenditures to the growth in the ‘residual’ as conventionally measured. Sections I to III of this paper review and summarise earlier work on returns to research, explain the logic behind them, and present some additional estimates of the impact of research expenditures in United States manufacturing industries on subsequent growth in their total factor productivity. Sections IV to VI discuss how research might be treated consistently in a set of real product and input accounts and explore what traces, if any, such expenditures leave in the conventional United States productivity accounts. Section VII closes the paper with a discussion of some, only slightly related, policy implications.

Keywords

Production Function Total Factor Productivity American Economic Review Inventive Activity Physical Capital 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© International Economic Association 1973

Authors and Affiliations

  • Zvi Griliches
    • 1
  1. 1.Harvard UniversityUSA

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