Griffith, Rachel; Redding, Stephen; Van Reenen, John - 2000
microeconometric literature on R&D and productivity, and the empirical literature on productivity convergence. Starting from a … reduced-form equation for Total Factor Productivity (TFP) growth that is commonly used in the empirical literature. We allow a … underestimate R&D's social rate of return and provides an explanation for long-run productivity levels at the industry level. …