摘要
Using data from 24 OECD countries, we find that the relationship between a country＇s R＆D investment and technological advantage in a sector （measured by the country＇s labor productivity of the sector relative to the rest of the world） is non-monotonic. In particular, for countries whose technology levels are much lower or higher than the rest of the world in a sector, their sectoral R＆D investment declines as their advantages in the sector improve; for counties with middle technology levels, the opposite is true. Extending the Eaton and Kortum framework, we develop a static model to theoretically analyze the relationship between R＆D investment and technological advantages. We show that when the research efficiency in a sector is sufficiently elastic with respect to the sectoral technological advantage, a country＇s R＆D investment increases with its technological advantage, and vice versa.
Using data from 24 OECD countries, we find that the relationship between a country＇s R＆D investment and technological advantage in a sector （measured by the country＇s labor productivity of the sector relative to the rest of the world） is non-monotonic. In particular, for countries whose technology levels are much lower or higher than the rest of the world in a sector, their sectoral R＆D investment declines as their advantages in the sector improve; for counties with middle technology levels, the opposite is true. Extending the Eaton and Kortum framework, we develop a static model to theoretically analyze the relationship between R＆D investment and technological advantages. We show that when the research efficiency in a sector is sufficiently elastic with respect to the sectoral technological advantage, a country＇s R＆D investment increases with its technological advantage, and vice versa.
