The Investigation of the Effect of Research and Development on the Iran׳s Industrial Sector Productivity
Subject Areas : Research and Development Management
Abolfazll
Shahabadi
1
(Tarbiat Modares University)
Omid
Rahmani
2
Keywords: Industrial Sector's Total Factor Productivity (TFP), Domestic R&D Stocks, R&D Spillovers, Human Capital,
Abstract :
This research is evaluated the theorical and analytical role of domestic R&D stocks, human capital and foreign R&D stocks (technology embodied in imports of capital and intermediate goods) on total factor productivity (TFP) growth of Iran׳s industrial sector. As regards, the research and development activities of Iran's industrial sector as compared to developed countries are little it could be hope to foreign R&D stock role and their spillovers on total factor productivity growth of this sector. because the absorption of foreign R&D spillovers mid developing the domestic R&D activities will provide favorable field to total factor productivity growth. Therefore, this study is investigated the direct effect of foreign and domestic R&D stocks (via technology embodied in imports of capital and intermediate goods (and human capital on total factor productivity (TFP) growth of Iran's industrial sector in during 1338-1385. The analytical results say that, human capital and foreign R&D stocks have respectively, the highest positive effect on TFP growth of industrial sector. While, in literature theory, domestic R&D stocks is also have a determinant role on TFP growth. But, by reason of low investment in research budgets and lack of the demand base of research activities, the effect of domestic R&D stocks on total factor productivity growth of Iran׳s industrial sector have, lower effect than foreign R&D stocks.