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R&D and Absorptive Capacity: Theory and Empirical Evidence*

Rachel Griffith, Stephen J. Redding, John Van Reenen · 2003 · Scandinavian Journal of Economics

Summary. This paper develops a unified framework connecting endogenous growth theory with empirical R&D research. It shows that R&D drives both innovation and absorptive capacity—the ability to adopt others' discoveries. The model explains long-run productivity differences between countries and reveals that previous studies underestimated R&D's social returns by ignoring absorptive capacity effects.

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Griffith, R., Redding, S. J., & Reenen, J. V.. (2003). R&D and Absorptive Capacity: Theory and Empirical Evidence*. Scandinavian Journal of Economics. https://doi.org/10.1111/1467-9442.00007

Details

DOI
10.1111/1467-9442.00007
Countries
United Kingdom
Regions
Europe
Categories
innovation-theory, regional-innovation-systems, general-innovation
Added
2026-04-28