Has New Zealand Benefited from its Investments in Research and Development?

24 Pages Posted: 21 Nov 2005

See all articles by Robin Johnson

Robin Johnson

Government of New Zealand - Department of Labour

Weshah A. Razzak

Massey University PN; Massey University PN

Steven Stillman

Free University of Bozen-Bolzano; IZA Institute of Labor Economics

Date Written: 2005

Abstract

We use panel data for nine industries to evaluate research and development (R&D) investments in New Zealand over the past forty years. We estimate the impact of R&D stocks in a particular industry on output per person in that industry and on output per person in the rest of the economy. We examine both public and private R&D investments. Privately provided R&D has a statistically significant positive impact on own-industry output per person, suggesting it increases productivity. However, publicly provided R&D has no impact on own-industry output per person. There is also evidence that private R&D in certain industries positively affects output per person in the rest of the economy, i.e., it generates positive spillovers. There is no evidence of positive spillovers from publicly provided R&D.

Keywords: R&D, spillovers, productivity

JEL Classification: O11, O47, C13

Suggested Citation

Johnson, Robin and Razzak, Weshah A. and Stillman, Steven, Has New Zealand Benefited from its Investments in Research and Development? (2005). Available at SSRN: https://ssrn.com/abstract=850644 or http://dx.doi.org/10.2139/ssrn.850644

Robin Johnson

Government of New Zealand - Department of Labour ( email )

P.O. Box 3705
Wellington
New Zealand

Weshah A. Razzak (Contact Author)

Massey University PN ( email )

Palmerston North, 4442
New Zealand
+64223055405 (Phone)

Massey University PN ( email )

Private Bag 11 222
Palmerston North, Manawatu 4442
New Zealand
0223055405 (Phone)
4442 (Fax)

Steven Stillman

Free University of Bozen-Bolzano ( email )

Via Sernesi 1
39100 Bozen-Bolzano (BZ), Bozen 39100
Italy

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

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