Productivity Growth and R&D Spillovers from University to Industry

This paper examines the link between Japanese universities' education and research and productivity growth in industry, using a newly available data set on 12 Japanese industries for the period between 1973 and 1998. We obtain empirical evidence showing that the supply of highly educated human capital from universities to industry plays an important role in the productivity growth of Japanese manufacturing industry during 1973|1985. We confirmed that the rate of return to R&D spillovers from universities has declined in recent years.