Abstract
This paper investigates the effect of R&D expenditures of the manufacturing industry on the productivity of the manufacturing industry for OECD countries. In this study, different from the previous studies, the share of manufacturing value-added in total value added is utilized instead of productivity of the manufacturing industry. The main independent variable is the share of manufacturing R&D expenditure in total R&D expenditure. The main aim of this study is to question the R&D and productivity relation on the basis of share increase. Due to the percentage nature of the variables, unlike other studies, the panel Tobit model is used. Also, autocorrelation and heteroscedasticity problems corrected by applying the dynamic jackknife procedure. The findings indicate that “the value-added share of the manufacturing industry in total” increases by 1.8% if “the share of R&D expenditures of the manufacturing industry in total” is doubled.
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