We present a model of endogenous firm growth with R&D investment and innovation as the engine of growth. The objective of our analysis is to present a framework that can be used for microeconometric analysis of firm performance in high-tech industries. The model for firm growth is a partial...

A number of market failures have been associated with R&D investments and significant amounts of public money have been spent on programs to stimulate innovative activities. In this paper, we review some recent microeconomic studies evaluating effects of government sponsored commercial R&D. We...

Our test of price-taking behavior looks at the choice of capacity rather than the choice of output. It is motivated by a complete spot markets model in which goods are distinguished by the selling probabilities in addition to other characteristics. When output is explained by total man-hours and...

This paper reviews the literature on the relationship of economic growth to the education levels of the labor force. The emphasis is on Ben-Porath's contribution to some of the issues in this field: the endogeneity of schooling, the role of the public sector as an `absorber' of educated labor,...

This paper compares and analyzes the growth of productivity in the manufacturing industries and firms in France and the U.S. based on newly assembled comparable data sets in both countries. Three explanations of the recent productivity slowdown are reviewed: shortfall in physical investment,...

This note reviews the history of the 'residual,' from its earliest articulation in Copeland (1937) to its codification in Solow (1957), describing the various earlier contributions by Tinbergen, Stigler, Schmookler, Fabricant, Kendrick, Abramovitz and others.

This is a first report from a larger study of inventive activity of U.S. firms and some of its consequences. It reports on the relationship between patents applied for and R&D expenditures based on data for 121 large corporations covering the 1968-1975 period. The main conclusion is that there...

A new data set (the NSF-Census match) containing information on the R&D expenditures, sales, employment, and other detail for approximately 1,000 largest manufacturing firms in the U.S. during 1957-1977 is analyzed using a standard production function framework augmented by the addition of an...

This paper investigates the relationship between earnings, schooling, and ability for young men and women who entered the labor force during the late 60s and 70s. The emphasis is on controlling for both observed and unobserved family characteristics, extending a framework developed earlier by...

We estimate separate productions functions for approximately 450 manufacturing firms each in France and the United States and for 850 manufacturing firms in Japan, covering the 13 year period 1967-1979, and focus on the wide dispersion in the estimated slope coefficients in all three countries....