How Robust is the R&D - Productivity Relationship? Evidence from OECD Countries

The authors examine the robustness of research and development (R&D) and productivity relationship in a panel of 16 OECD countries. They control for fifteen productivity determinants predicted by different theoretical models. R&D and human capital emerge robust in all specifications making them universal drivers of productivity across nations. Most other determinants are also significant. Productivity relationships are heterogonous across countries depending on their accumulated stocks of knowledge and human capital.