This study examines how R&D specialization within the manufacturing sector affects productivity growth, constructing various measures of R&D specialization using a concentration index and industrial classification. Based on 11 member countries of the Organization for Economic Co-operation and Development (OECD) for the period from 1981 to 2000, the results obtained based on the fixed-effect panel data model with cross-sectional dependence indicate that concentrating suitable R&D resources within a few industries tends to promote productivity growth. Moreover, this positive effect is relevant to concentrating on development-oriented industries or process innovation-oriented industries.
ASJC Scopus subject areas
- Economics and Econometrics
- Political Science and International Relations