PUBLICATIONS & REPORTS

PUBLICATIONS & REPORTS

R & D and Productivity: The Case of Taiwan’s Electronics Industry

Author Been-Lon Chen
Date of Publication 2002. 5
No. 2002-16
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Contents Introduction

This paper uses a unique panel data set in electrical and electronic manufacturing covering from 1988-1997 to evaluate the performance resulting from firms’ dynamic behavior over time. Our focus is on the effect of R&D effort on labor productivity of firms in the electrical and electronic manufacturing. Using three variables to measure the R&D effort, we find that the R&D effort is an important determinant of a firm’s labor productivity. The three variables we use are (i) the number of full-time researchers hired, (ii) the amount of R&D expenditure spent and (iii) the annual new patents obtained.