[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-0-en-105":3,"doc-seo-503182-105":59,"doc-detail-503182-en":130},{"code":4,"msg":5,"data":6},0,"success",[7,13,18,23,28,33,38,43,48,51,55],{"id":8,"doc_module":4,"doc_module_name":9,"category_name":10,"show_sort_weight":11,"slug":12},1,"Document","Story & Novel",90,"story-novel",{"id":14,"doc_module":4,"doc_module_name":9,"category_name":15,"show_sort_weight":16,"slug":17},2,"Literature",80,"literature",{"id":19,"doc_module":4,"doc_module_name":9,"category_name":20,"show_sort_weight":21,"slug":22},4,"Exam",70,"exam",{"id":24,"doc_module":4,"doc_module_name":9,"category_name":25,"show_sort_weight":26,"slug":27},5,"Comic",60,"comic",{"id":29,"doc_module":4,"doc_module_name":9,"category_name":30,"show_sort_weight":31,"slug":32},6,"Technology",50,"technology",{"id":34,"doc_module":4,"doc_module_name":9,"category_name":35,"show_sort_weight":36,"slug":37},7,"Healthcare",40,"healthcare",{"id":39,"doc_module":4,"doc_module_name":9,"category_name":40,"show_sort_weight":41,"slug":42},8,"Research & Report",30,"research-report",{"id":44,"doc_module":4,"doc_module_name":9,"category_name":45,"show_sort_weight":46,"slug":47},9,"Religion & Spirituality",20,"religion-spirituality",{"id":46,"doc_module":4,"doc_module_name":9,"category_name":49,"show_sort_weight":46,"slug":50},"World Cup","world-cup",{"id":52,"doc_module":4,"doc_module_name":9,"category_name":53,"show_sort_weight":52,"slug":54},10,"Lifestyle","lifestyle",{"id":56,"doc_module":4,"doc_module_name":9,"category_name":57,"show_sort_weight":24,"slug":58},19,"General","general",{"code":4,"msg":60,"data":61},"ok",{"site_id":62,"language":63,"slug":64,"title":65,"keywords":66,"description":67,"schema_data":68,"social_meta":123,"head_meta":125,"extra_data":127,"updated_unix":129},105,"en","public-rd-spillovers-and-productivity-growth","Public R&D Spillovers and Productivity Growth","","Examines whether the source of Research and Development funding—public versus private—shapes aggregate productivity growth. Using a unique firm-level dataset with patent and balance-sheet information across 70 years (1950–2020), the study estimates the long-run effects of the US decline in public R&D. Two instrumental-variable approaches identify spillover channels, showing that reduced public R&D spillovers significantly lower productivity growth.",{"@graph":69,"@context":122},[70,84,105],{"@type":71,"itemListElement":72},"BreadcrumbList",[73,77,79,82],{"item":74,"name":75,"@type":76,"position":8},"https://docshare.wps.com","Home","ListItem",{"item":78,"name":9,"@type":76,"position":14},"https://docshare.wps.com/document/",{"item":80,"name":40,"@type":76,"position":81},"https://docshare.wps.com/document/research-report/",3,{"item":83,"name":65,"@type":76,"position":19},"https://docshare.wps.com/document/public-rd-spillovers-and-productivity-growth/503182/",{"url":83,"name":65,"@type":85,"image":86,"author":91,"headline":65,"publisher":94,"fileFormat":97,"inLanguage":63,"description":67,"dateModified":98,"datePublished":99,"encodingFormat":97,"isAccessibleForFree":100,"interactionStatistic":101},"DigitalDocument",{"url":87,"@type":88,"width":89,"height":90},"https://docshare.wps.com/thumbnails/public-rd-spillovers-and-productivity-growth/503182.png","ImageObject",300,407,{"name":92,"@type":93},"cksankcs","Person",{"url":74,"name":95,"@type":96},"DocShare","Organization","application/pdf","2026-10-11","2026-10-03",true,{"@type":102,"interactionType":103,"userInteractionCount":24},"InteractionCounter",{"@type":104},"ViewAction",{"@type":106,"mainEntity":107},"FAQPage",[108,114,118],{"name":109,"@type":110,"acceptedAnswer":111},"What is the document’s central question about R&D funding sources?","Question",{"text":112,"@type":113},"It asks whether public or private R&D funding sources affect aggregate productivity growth through spillovers.","Answer",{"name":115,"@type":110,"acceptedAnswer":116},"How is the impact of declining public R&D estimated?",{"text":117,"@type":113},"The study uses firm-level data over 1950–2020 and two instrumental-variable strategies to estimate effects through spillovers.",{"name":119,"@type":110,"acceptedAnswer":120},"What main quantitative finding is reported for public R&D spillovers?",{"text":121,"@type":113},"A 1% decline in public R&D spillovers leads to a 0.17% decline in productivity growth, with effects persisting at the sector level.","https://schema.org",{"og:url":83,"og:type":124,"og:title":65,"og:site_name":95,"og:description":67},"article",{"robots":126,"canonical":83},"index,follow",{"doc_id":128,"site_id":62},503182,1791293461,{"code":4,"msg":5,"data":131},{"doc_id":128,"user_id":132,"nickname":92,"user_avatar":133,"doc_module":4,"category_id":39,"category_name":40,"doc_title":65,"doc_description":67,"doc_content":134,"file_id":135,"file_url":136,"file_type":137,"file_size":138,"view_count":24,"is_deleted":4,"is_public":8,"is_downloadable":8,"audit_status":8,"page_count":139,"language":140,"language_code":63,"site_id":62,"html_lang":63,"table_of_contents":141,"faqs":142,"seo_title":143,"seo_description":67,"update_tm":144,"read_time":145},3985747882755,"https://ap-avatar.wpscdn.com/davatar_29158cc5080c5b710cf443261637dec0","Public R&D Spillovers and Productivity Growth  \nArnaud Dyvre  \nLSE  \nJanuary 22nd, 2024  \n[Latest version]  \nABSTRACT. Does the source of Research and Development funding, public or private, matter for aggregate productivity growth? Using a unique firm-level dataset with patent and balance-sheet information covering 70 years (1950-2020), I estimate the impact of the decline in public R&D in the US on long-run productivity growth. I use two instrumental variable strategies–a historical shift-share IV and a patent examiner leniency instrument– to estimate the impact of the decline in public R&D on the productivity of firms through spillovers. I find that a 1% decline in public R&D spillovers causes a 0.17% decline in productivity growth. Public R&D spillovers are three times as impactful as private R&Dspillovers for firm productivity and their impact persists at the sector level. Moreover, smaller firms experience larger productivity gains from public R&D spillovers. I calibrate a model of growth with heterogeneous firms which suggests that the decline in public R&D can explain around a third of the decline in TFP growth in the US from 1950 to 2017, and a third of the rise in size inequality between firms over the same period.  \nKey words: Growth, Firm heterogeneity, R&D, Productivity, Technology spillovers, Patents  \nJEL codes: O31, O32, O33, O38, D24, L25  \nDepartment of Economics, LSE, [a.dyevre@lse.ac.uk](a.dyevre@lse.ac.uk), [arnauddyevre.com](arnauddyevre.com)  \nFirst version: October 15th, 2023 .  \nFor their invaluable, patient and supportive guidance, I am indebted to Arun Advani, Xavier Jaravel, Ben Moll and John Van Reenen. For insightful feedback and discussions, I thank participants in the Macroeconomics, Public Economics and EEE seminars at LSE, the Alan Turing Economics Data Science workshop, the Warwick PhD conference, the Concordi 2023 conference and WEFI. In particular, I extend my thanks to Ufuk Akcigit, Marco Bellifemine, Maarten De Ridder, Matthias Doepke, Gaia Dossi, Joe Hazell, Ethan Ilzetzki, Peter Lambert, Camille Landais, William Matcham, Filippo Mezzanotti, Javier Miranda, Jane Olmstead-Rumsey, Daniel Reck, Hugo Reichardt, Yannick Schindler, Oliver Seager, Kate Smith, Johannes Spinnewijn, Aditya Soenarjo, Abhijit Tagade, Alexander Whalley and Alwyn Young for their helpful comments.  \nThis research benefited from financial support from STICERD (grants \\#107728 and \\#108954), which is gratefully acknowledged.  \n1. INTRODUCTION  \nThe history of American technological progress is rich with examples of successful applications of government-funded research to the wider market economy. For instance, the US Department of Energy pioneered the development of lithium-iron batteries in the 1970s, and today’s fast-growing vertical farming industry builds upon technologies first developed in the 1990s by NASA to grow plants in space. These public-to-private technology spillovers have been celebrated by advocates of a state-led approach to innovation. However, many see them as cherry-picked examples of an inefficient allocation of resources away from the private sector. This debate is made even more relevant by the fact that, in modern growth theory, spillovers play a critical role in driving productivity growth. Understanding how spillovers from private R&D differ from those of public R&D is therefore essential to assess the consequences of the secular decline in US public R&D asa share of GDP over the past 60 years (shown in Figure 1, left panel) .1 If public and private R&D differ in their ability to generate spillovers, then this large compositional shift in R&D should have important consequences for innovation and productivity growth.2  \n\n| % of | GDP |  |  |  |  |  |  | Total |\n| --- | --- | --- | --- | --- | --- | --- | --- | --- |\n|  |  |  |  |  |  |  |  | Private |\n|  |  |  |  |  |  |  |  |  |\n|  |  |  |  |  |  |  |  | Federal\u003Cbr>NGOs\u003Cbr>Uni. |\n\nStates  \n4  \n3  \n2  \n1  \n0  \n1950 1960 1970 1980 1990 2000 2010 ","cbCaijJwtb6sGtTv","https://ap.wps.com/l/cbCaijJwtb6sGtTv","pdf",4136406,109,"English","# Abstract\n# Introduction\n## Public-to-private spillovers and the role of R&D funding sources\n## Data, identification challenges, and the open question\n## Figure 1: R&D funding and TFP growth in the US","[{\"question\":\"What is the document’s central question about R\\u0026D funding sources?\",\"answer\":\"It asks whether public or private R\\u0026D funding sources affect aggregate productivity growth through spillovers.\"},{\"question\":\"How is the impact of declining public R\\u0026D estimated?\",\"answer\":\"The study uses firm-level data over 1950–2020 and two instrumental-variable strategies to estimate effects through spillovers.\"},{\"question\":\"What main quantitative finding is reported for public R\\u0026D spillovers?\",\"answer\":\"A 1% decline in public R\\u0026D spillovers leads to a 0.17% decline in productivity growth, with effects persisting at the sector level.\"}]","Public R&D Spillovers and Productivity Growth | PDF",1791051621,275]