TY  - JOUR
AU  - Wang, Jiann-Chyuan
AU  - Tsai, Kuen-Hung
TI  - Productivity Growth and R&D Expenditure in Taiwan's Manufacturing Firms
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 9724
PY  - 2003
Y2  - May 2003
DO  - 10.3386/w9724
UR  - http://www.nber.org/papers/w9724
L1  - http://www.nber.org/papers/w9724.pdf
M1  - published as Jiann-Chyuan Wang, Kuen-Hung Tsai. "Productivity Growth and R&D Expenditure in Taiwan's Manufacturing Firms," in Takatoshi Ito and Andrew K. Rose, editors, "Growth and Productivity in East Asia" University of Chicago Press (2004)

AB  - This study sets out to estimate the impact of R&D on productivity within the private sector, with further analysis of the different impacts of R&D in high-tech and conventional firms. The study also aims to estimate the rates of return on R&D investment and total factor productivity at firm level. Based on a sample of 136 large manufacturing firms listed on the Taiwan Stock Exchange over the period 1994-2000, our findings suggest that Taiwan's R&D investment had a significant impact on firm productivity growth, with output elasticity standing at around 0.18. When the sample is divided into high-tech and conventional firms, the R&D output elasticity in high-tech firms is significantly greater than that of conventional firms. In addition, the average rate of return in high-tech firms is much larger than that estimated in other industries. Our empirical findings further show that although there was a dramatic decline in TFP in 1998 for all selected industries, this nevertheless started to climb again in 1999.
ER  -