The impact of R&D spillovers on UK manufacturing TFP: A dynamic panel approach

Abstract

One of the benefits claimed for investment in Research and Development (R&D) is that there is a spillover effect. Industries benefit from both their own R&D efforts as well as the efforts of other national and overseas industries. The present research presents new evidence on the long-term impact of R&D investment upon UK industry's productivity performance and on the nature of these “R&D spillovers”. The results suggest that R&D efforts from the industry itself and from other national industries have a positive impact on the industry's productivity but, interestingly, there is no gain from foreign R&D investment.