Relating the Knowledge Production Function to total Factor Productivity

The knowledge production function is central to R&D-based growth models. This paper empirically investigates the knowledge production function and intertemporal spillover effects using cointegration techniques. Time-series evidence suggests there are two long-run cointegrating relationships. The first captures a long-run knowledge production function; the second captures a long-run positive relationship between TFP and the knowledge stock. The results indicate the presence of strong intertemporal knowledge spillovers and that the long-run impact of the knowledge stock on TFP is small. This evidence is interpreted in light of existing theoretical and empirical evidence on endogenous growth.Production;Productivity;Economic growth;Economic models;r & d, patents, patent applications, equation, cointegration, statistic, statistics, time series, standard errors, total patent applications, number of patent applications, dummy variables, number of researchers, patent office, total patents, patent filings, prediction, empirical model, significance levels, r & d expenditures, standard error, total number of patent applications, number ? of ? patent ? applications, correlations, basic research, dummy variable, equations, outliers, research and development, r & d activities, logarithms, survey, econometrics, functional form, patent ? applications, probabilities, research programs, significance level, constant mean, total ? number ? of ? patent ? applications, research policy, samples, calculus, empirical validity, r & d spillovers, correlation, predictions, random walks, sample size, hypothesis testing, constant term, scientific research personnel, autocorrelation, scientific research, covariance, statistical methodology, patent protection, probability, linear trend, diffusion process, logarithm, r & d resources, surveys