1 / 15

Comments to: “Identifying R&D Shortfalls in LDC” Andrés Rodriguez-Clare

Comments to: “Identifying R&D Shortfalls in LDC” Andrés Rodriguez-Clare. Rodrigo Fuentes, Central Bank of Chile Barcelona, June 2005. Issues that I liked: Technological improvement generates level-rather than growth rate effects Several plausible hypotheses are checked

jiro
Download Presentation

Comments to: “Identifying R&D Shortfalls in LDC” Andrés Rodriguez-Clare

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Comments to:“Identifying R&D Shortfalls in LDC”Andrés Rodriguez-Clare Rodrigo Fuentes, Central Bank of Chile Barcelona, June 2005

  2. Issues that I liked: • Technological improvement generates level-rather than growth rate effects • Several plausible hypotheses are checked • Policy implications are carefully derived • Comments • Hard to read • Distortions are important. How to include them? • Trade should affect the free flow of ideas • Conjectures and policy implications

  3. TFP is the result of accumulation but also of complementarity of good policies and good institutions • Distortions are important. Are they properly included in the paper? • Meaning of z=1.1 for the case of Chile? • The parameter ε should depend on trade distortions (Edwards, 1992, Coe and Helpman, 1995, Keller, 1998) • Natural resources matters: mining sector is the most K-intensive sector

  4. Source: Calderón and Fuentes, 2005

  5. Source: Calderón and Fuentes, 2005

  6. Source: Fuentes and Mies (2005) based on an index constructed by the World Bank. It includes literacy rate, and formal education enrollment

  7. Index Source: Constructed by Mies and Fuentes (2005) based on WDI Quality of EducationKernel Distribution

  8. Quality of Education Source: Fuentes and Mies (2005)

  9. Source: Fuentes and Mies (2005) based on World Bank Data

  10. Conjectures • Credit market. Large companies do have access to credit • Lack of human resources. Quality of education • Policies and institutions. Private sector and research institutions collaboration. • Policies implications • Domestic versus international spillovers • The role of trade and financial policies • What to do in Chile and other LDC? There is not a unique policy rule

  11. Comments to: “Patenting and R&D: A Global View”M. Bosch, D. Lederman, W. Maloney Rodrigo Fuentes, Central Bank of Chile Barcelona, June 2005

  12. This paper • Empirical approach to determinants of innovation output, using US patents granted data • Empirical strategy is carefully implemented • Comments • Main result: long run elasticity equal to one for developed economies • Relation to previous paper? • Incentives to invest in R&D in LDC: measurement error of return to R&D • Check of robustness

  13. Main result: surprisingly high long-run elasticity of patents respect to R&D for DC • Is this compatible with idea of externalities and spillovers? • Romer (1986) assumes increasing returns in the production of consumption good, but strong diminishing returns in the production of knowledge • The previous paper argues in favor of the importance of externalities, the findings of this one cannot be placed within a theoretical growth model with externalities

  14. Incentives for the private sector to invest in R&D may not be related to obtain a patent in the US: • the target could be the domestic market or • the adaptation of new technology • The final section is quite important. It seems that the inclusion of NIS variable reduces the long-term elasticity

  15. Suggestions: • It would be informative to present the elasticity and the standard error for some specific countries • Expected to see an estimation with the interaction between export to US and R&D variables

More Related