Edited by Bronwyn H. Hall, Professor Emerita of Economics (retired), University of California at Berkeley, Research Associate, National Bureau of Economic Research, US and International Research Associate, Institute of Fiscal Studies, London, UK

• Contents:Introduction Bronwyn H. HallPART IBASICS OF RESEARCH AND DEVELOPMENT 1. Kenneth J. Arrow (1962), ‘Economic Welfare and the Allocation of Resources for Invention’, in Richard R. Nelson (ed.), The Rate and Direction of Inventive Activity: Economic and Social Factors, Chapter 23, Princeton, New Jersey, USA: Princeton University Press, 609–262. Joseph A. Schumpeter ([1943] 2003), ‘The Process of Creative Destruction’ and ‘Monopolistic Practices’, in Capitalism, Socialism and Democracy, Chapters 7–8, London, UK and NY, USA: Routledge, 81–1063. F.M. Scherer, Dietmar Harhoff and Jörg Kukies (2000), ‘Uncertainty and the Size Distribution of Rewards from Innovation’, Journal of Evolutionary Economics, 10 (1–2), January, 175–2004. Paula E. Stephan (1996), ‘The Economics of Science’, Journal of Economic Literature, XXXIV (3), September, 1199–235PART IIHISTORICAL PERSPECTIVES5. William F. Ogburn and Dorothy Thomas (1922), ‘Are Inventions Inevitable? A Note on Social Evolution’, Political Science Quarterly, 37 (1), March, 83–986. David C. Mowery (1983), ‘Industrial Research and Firm Size, Survival, and Growth in American Manufacturing, 1921–46: An Assessment’, Journal of Economic History, 43 (4), December, 953–80PART IIICONDUCT OF RESEARCH AND DEVELOPMENT 7. Nathan Rosenberg (1969), ‘The Direction of Technological Change: Inducement Mechanisms and Focusing Devices’, Economic Development and Cultural Change, 18 (1, part 1), October, 1–248. Richard R. Nelson (1959), ‘The Simple Economics of Basic Scientific Research’, Journal of Political Economy, 67 (3), June, 297–3069. Wesley M. Cohen and Daniel A. Levinthal (1989), ‘Innovation and Learning: The Two Faces of R&D’, Economic Journal, 99 (397), September, 569–9610. Suzanne Scotchmer (1991), ‘Standing on the Shoulders of Giants: Cumulative Research and the Patent Law’, Journal of Economic Perspectives, 5 (1), Winter, 29–41PART IVRESEARCH AND DEVELOPMENT SPILLOVERS 11. Adam B. Jaffe (1986), ‘Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value’, American Economic Review, 76 (5), December, 984–100112. Jeffrey I. Bernstein and M. Ishaq Nadiri (1989), ‘Research and Development and Intra-industry Spillovers: An Empirical Application of Dynamic Duality’, Review of Economic Studies, 56 (2), April, 249–6913. David T. Coe and Elhanan Helpman (1995), ‘International R&D Spillovers’, European Economic Review, 39 (5), May, 859–8714. Wolfgang Keller (1998), ‘Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners’, European Economic Review, 42 (8), September, 1469–8115. Zvi Griliches (1992), ‘The Search for R&D Spillovers’, Scandinavian Journal of Economics, 94 (Supplement), S29–S47PART VFINANCING OF RESEARCH AND DEVELOPMENT 16. Bronwyn H. Hall (2002), ‘The Financing of Research and Development’, Oxford Review of Economic Policy, 18 (1), March, 35–5117. Ronald J. Gilson (2003), ‘Engineering a Venture Capital Market: Lessons From the American Experience’, Stanford Law Review, 55 (4), April, 1067–10318. Paul Gompers and Josh Lerner (2001), ‘The Venture Capital Revolution’, Journal of Economic Perspectives, 15 (2), Spring, 145–6819. Bronwyn H. Hall and John Van Reenen (2000), ‘How Effective are Fiscal Incentives for R&D? A Review of the Evidence’, Research Policy, 29 (4–5), April, 449–6920. Paul A. David, Bronwyn H. Hall and Andrew A. Toole (2000), ‘Is Public R & D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence’, Research Policy, 29 (4–5), April, 497–529PART VIRESEARCH AND DEVELOPMENT AND MARKET STRUCTURE 21. F.M. Scherer (1967), ‘Research and Development Resource Allocation Under Rivalry’, Quarterly Journal of Economics, LXXXI (3), August, 359–9422. Partha Dasgupta and Joseph Stiglitz (1980), ‘Industrial Structure and the Nature of Innovative Activity’, Economic Journal, 90 (358), June, 266–9323. Wesley Cohen (1995), ‘Empirical Studies of Innovative Activity and Performance’, in Paul Stoneman (ed.), Handbook of the Economics of Innovation and Technological Change, Chapter 6, Oxford, UK: Blackwell Publishers, 182–26424. Philippe Aghion, Nick Bloom, Richard Blundell, Rachel Griffith and Peter Howitt (2005), ‘Competition and Innovation: An Inverted-U Relationship’, Quarterly Journal of Economics, 120 (2), May, 701–28PART VIIMEASURING RESEARCH AND DEVELOPMENT PERFORMANCE25. Edwin Mansfield, John Rapoport, Anthony Romeo, Samuel Wagner and George Beardsley (1977), ‘Social and Private Rates of Return from Industrial Innovations’, Quarterly Journal of Economics, 91 (2), May, 221–4026. Zvi Griliches (1958), ‘Research Costs and Social Returns: Hybrid Corn and Related Innovations’, Journal of Political Economy, 66 (5), October, 419–3127. Zvi Griliches (1979), ‘Issues in Assessing the Contribution of Research and Development to Productivity Growth’, Bell Journal of Economics, 10 (1), Spring, 92–11628. Zvi Griliches (1994), ‘Productivity, R&D, and the Data Constraint’, American Economic Review, 84 (1), March, 1–2329. Bruno Crépon, Emmanuel Duguet and Jacques Mairesse (1998), ‘Research, Innovation and Productivity: An Econometric Analysis at the Firm Level’, Economics of Innovation and New Technology, 7 (2), 115–5830. Bronwyn H. Hall (2005), ‘Measuring the Returns to R&D: The Depreciation Problem’, Annales D’Économie et de Statistique, Issue Spécial, 79–80 (IV), July – December, 341–81PART VIII RESEARCH AND DEVELOPMENT AND ECONOMIC GROWTH 31. Robert M. Solow (1957), ‘Technical Change and the Aggregate Production Function’, Review of Economics and Statistics, 39 (3), August, 312–2032. Charles I. Jones and John C. Williams (1998), ‘Measuring the Social Return to R&D’, Quarterly Journal of Economics, 113 (4), November, 1119–3533. Carol Corrado, Charles Hulten and Daniel Sichel (2009), ‘Intangible Capital and US Economic Growth’, Review of Income and Wealth, 55 (3), September, 661–85Index

Edited by Bronwyn H. Hall, Professor Emerita of Economics (retired), University of California at Berkeley, Research Associate, National Bureau of Economic Research, US and International Research Associate, Institute of Fiscal Studies, London, UK

• Contents:Introduction Bronwyn H. HallPART IBASICS OF RESEARCH AND DEVELOPMENT 1. Kenneth J. Arrow (1962), ‘Economic Welfare and the Allocation of Resources for Invention’, in Richard R. Nelson (ed.), The Rate and Direction of Inventive Activity: Economic and Social Factors, Chapter 23, Princeton, New Jersey, USA: Princeton University Press, 609–262. Joseph A. Schumpeter ([1943] 2003), ‘The Process of Creative Destruction’ and ‘Monopolistic Practices’, in Capitalism, Socialism and Democracy, Chapters 7–8, London, UK and NY, USA: Routledge, 81–1063. F.M. Scherer, Dietmar Harhoff and Jörg Kukies (2000), ‘Uncertainty and the Size Distribution of Rewards from Innovation’, Journal of Evolutionary Economics, 10 (1–2), January, 175–2004. Paula E. Stephan (1996), ‘The Economics of Science’, Journal of Economic Literature, XXXIV (3), September, 1199–235PART IIHISTORICAL PERSPECTIVES5. William F. Ogburn and Dorothy Thomas (1922), ‘Are Inventions Inevitable? A Note on Social Evolution’, Political Science Quarterly, 37 (1), March, 83–986. David C. Mowery (1983), ‘Industrial Research and Firm Size, Survival, and Growth in American Manufacturing, 1921–46: An Assessment’, Journal of Economic History, 43 (4), December, 953–80PART IIICONDUCT OF RESEARCH AND DEVELOPMENT 7. Nathan Rosenberg (1969), ‘The Direction of Technological Change: Inducement Mechanisms and Focusing Devices’, Economic Development and Cultural Change, 18 (1, part 1), October, 1–248. Richard R. Nelson (1959), ‘The Simple Economics of Basic Scientific Research’, Journal of Political Economy, 67 (3), June, 297–3069. Wesley M. Cohen and Daniel A. Levinthal (1989), ‘Innovation and Learning: The Two Faces of R&D’, Economic Journal, 99 (397), September, 569–9610. Suzanne Scotchmer (1991), ‘Standing on the Shoulders of Giants: Cumulative Research and the Patent Law’, Journal of Economic Perspectives, 5 (1), Winter, 29–41PART IVRESEARCH AND DEVELOPMENT SPILLOVERS 11. Adam B. Jaffe (1986), ‘Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value’, American Economic Review, 76 (5), December, 984–100112. Jeffrey I. Bernstein and M. Ishaq Nadiri (1989), ‘Research and Development and Intra-industry Spillovers: An Empirical Application of Dynamic Duality’, Review of Economic Studies, 56 (2), April, 249–6913. David T. Coe and Elhanan Helpman (1995), ‘International R&D Spillovers’, European Economic Review, 39 (5), May, 859–8714. Wolfgang Keller (1998), ‘Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners’, European Economic Review, 42 (8), September, 1469–8115. Zvi Griliches (1992), ‘The Search for R&D Spillovers’, Scandinavian Journal of Economics, 94 (Supplement), S29–S47PART VFINANCING OF RESEARCH AND DEVELOPMENT 16. Bronwyn H. Hall (2002), ‘The Financing of Research and Development’, Oxford Review of Economic Policy, 18 (1), March, 35–5117. Ronald J. Gilson (2003), ‘Engineering a Venture Capital Market: Lessons From the American Experience’, Stanford Law Review, 55 (4), April, 1067–10318. Paul Gompers and Josh Lerner (2001), ‘The Venture Capital Revolution’, Journal of Economic Perspectives, 15 (2), Spring, 145–6819. Bronwyn H. Hall and John Van Reenen (2000), ‘How Effective are Fiscal Incentives for R&D? A Review of the Evidence’, Research Policy, 29 (4–5), April, 449–6920. Paul A. David, Bronwyn H. Hall and Andrew A. Toole (2000), ‘Is Public R & D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence’, Research Policy, 29 (4–5), April, 497–529PART VIRESEARCH AND DEVELOPMENT AND MARKET STRUCTURE 21. F.M. Scherer (1967), ‘Research and Development Resource Allocation Under Rivalry’, Quarterly Journal of Economics, LXXXI (3), August, 359–9422. Partha Dasgupta and Joseph Stiglitz (1980), ‘Industrial Structure and the Nature of Innovative Activity’, Economic Journal, 90 (358), June, 266–9323. Wesley Cohen (1995), ‘Empirical Studies of Innovative Activity and Performance’, in Paul Stoneman (ed.), Handbook of the Economics of Innovation and Technological Change, Chapter 6, Oxford, UK: Blackwell Publishers, 182–26424. Philippe Aghion, Nick Bloom, Richard Blundell, Rachel Griffith and Peter Howitt (2005), ‘Competition and Innovation: An Inverted-U Relationship’, Quarterly Journal of Economics, 120 (2), May, 701–28PART VIIMEASURING RESEARCH AND DEVELOPMENT PERFORMANCE25. Edwin Mansfield, John Rapoport, Anthony Romeo, Samuel Wagner and George Beardsley (1977), ‘Social and Private Rates of Return from Industrial Innovations’, Quarterly Journal of Economics, 91 (2), May, 221–4026. Zvi Griliches (1958), ‘Research Costs and Social Returns: Hybrid Corn and Related Innovations’, Journal of Political Economy, 66 (5), October, 419–3127. Zvi Griliches (1979), ‘Issues in Assessing the Contribution of Research and Development to Productivity Growth’, Bell Journal of Economics, 10 (1), Spring, 92–11628. Zvi Griliches (1994), ‘Productivity, R&D, and the Data Constraint’, American Economic Review, 84 (1), March, 1–2329. Bruno Crépon, Emmanuel Duguet and Jacques Mairesse (1998), ‘Research, Innovation and Productivity: An Econometric Analysis at the Firm Level’, Economics of Innovation and New Technology, 7 (2), 115–5830. Bronwyn H. Hall (2005), ‘Measuring the Returns to R&D: The Depreciation Problem’, Annales D’Économie et de Statistique, Issue Spécial, 79–80 (IV), July – December, 341–81PART VIII RESEARCH AND DEVELOPMENT AND ECONOMIC GROWTH 31. Robert M. Solow (1957), ‘Technical Change and the Aggregate Production Function’, Review of Economics and Statistics, 39 (3), August, 312–2032. Charles I. Jones and John C. Williams (1998), ‘Measuring the Social Return to R&D’, Quarterly Journal of Economics, 113 (4), November, 1119–3533. Carol Corrado, Charles Hulten and Daniel Sichel (2009), ‘Intangible Capital and US Economic Growth’, Review of Income and Wealth, 55 (3), September, 661–85Index

Edited by Bronwyn H. Hall, Professor Emerita of Economics (retired), University of California at Berkeley, Research Associate, National Bureau of Economic Research, US and International Research Associate, Institute of Fiscal Studies, London, UK

• Contents:Introduction Bronwyn H. HallPART IBASICS OF RESEARCH AND DEVELOPMENT 1. Kenneth J. Arrow (1962), ‘Economic Welfare and the Allocation of Resources for Invention’, in Richard R. Nelson (ed.), The Rate and Direction of Inventive Activity: Economic and Social Factors, Chapter 23, Princeton, New Jersey, USA: Princeton University Press, 609–262. Joseph A. Schumpeter ([1943] 2003), ‘The Process of Creative Destruction’ and ‘Monopolistic Practices’, in Capitalism, Socialism and Democracy, Chapters 7–8, London, UK and NY, USA: Routledge, 81–1063. F.M. Scherer, Dietmar Harhoff and Jörg Kukies (2000), ‘Uncertainty and the Size Distribution of Rewards from Innovation’, Journal of Evolutionary Economics, 10 (1–2), January, 175–2004. Paula E. Stephan (1996), ‘The Economics of Science’, Journal of Economic Literature, XXXIV (3), September, 1199–235PART IIHISTORICAL PERSPECTIVES5. William F. Ogburn and Dorothy Thomas (1922), ‘Are Inventions Inevitable? A Note on Social Evolution’, Political Science Quarterly, 37 (1), March, 83–986. David C. Mowery (1983), ‘Industrial Research and Firm Size, Survival, and Growth in American Manufacturing, 1921–46: An Assessment’, Journal of Economic History, 43 (4), December, 953–80PART IIICONDUCT OF RESEARCH AND DEVELOPMENT 7. Nathan Rosenberg (1969), ‘The Direction of Technological Change: Inducement Mechanisms and Focusing Devices’, Economic Development and Cultural Change, 18 (1, part 1), October, 1–248. Richard R. Nelson (1959), ‘The Simple Economics of Basic Scientific Research’, Journal of Political Economy, 67 (3), June, 297–3069. Wesley M. Cohen and Daniel A. Levinthal (1989), ‘Innovation and Learning: The Two Faces of R&D’, Economic Journal, 99 (397), September, 569–9610. Suzanne Scotchmer (1991), ‘Standing on the Shoulders of Giants: Cumulative Research and the Patent Law’, Journal of Economic Perspectives, 5 (1), Winter, 29–41PART IVRESEARCH AND DEVELOPMENT SPILLOVERS 11. Adam B. Jaffe (1986), ‘Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value’, American Economic Review, 76 (5), December, 984–100112. Jeffrey I. Bernstein and M. Ishaq Nadiri (1989), ‘Research and Development and Intra-industry Spillovers: An Empirical Application of Dynamic Duality’, Review of Economic Studies, 56 (2), April, 249–6913. David T. Coe and Elhanan Helpman (1995), ‘International R&D Spillovers’, European Economic Review, 39 (5), May, 859–8714. Wolfgang Keller (1998), ‘Are International R&D Spillovers Trade-Related? Analyzing Spillovers Among Randomly Matched Trade Partners’, European Economic Review, 42 (8), September, 1469–8115. Zvi Griliches (1992), ‘The Search for R&D Spillovers’, Scandinavian Journal of Economics, 94 (Supplement), S29–S47PART VFINANCING OF RESEARCH AND DEVELOPMENT 16. Bronwyn H. Hall (2002), ‘The Financing of Research and Development’, Oxford Review of Economic Policy, 18 (1), March, 35–5117. Ronald J. Gilson (2003), ‘Engineering a Venture Capital Market: Lessons From the American Experience’, Stanford Law Review, 55 (4), April, 1067–10318. Paul Gompers and Josh Lerner (2001), ‘The Venture Capital Revolution’, Journal of Economic Perspectives, 15 (2), Spring, 145–6819. Bronwyn H. Hall and John Van Reenen (2000), ‘How Effective are Fiscal Incentives for R&D? A Review of the Evidence’, Research Policy, 29 (4–5), April, 449–6920. Paul A. David, Bronwyn H. Hall and Andrew A. Toole (2000), ‘Is Public R & D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence’, Research Policy, 29 (4–5), April, 497–529PART VIRESEARCH AND DEVELOPMENT AND MARKET STRUCTURE 21. F.M. Scherer (1967), ‘Research and Development Resource Allocation Under Rivalry’, Quarterly Journal of Economics, LXXXI (3), August, 359–9422. Partha Dasgupta and Joseph Stiglitz (1980), ‘Industrial Structure and the Nature of Innovative Activity’, Economic Journal, 90 (358), June, 266–9323. Wesley Cohen (1995), ‘Empirical Studies of Innovative Activity and Performance’, in Paul Stoneman (ed.), Handbook of the Economics of Innovation and Technological Change, Chapter 6, Oxford, UK: Blackwell Publishers, 182–26424. Philippe Aghion, Nick Bloom, Richard Blundell, Rachel Griffith and Peter Howitt (2005), ‘Competition and Innovation: An Inverted-U Relationship’, Quarterly Journal of Economics, 120 (2), May, 701–28PART VIIMEASURING RESEARCH AND DEVELOPMENT PERFORMANCE25. Edwin Mansfield, John Rapoport, Anthony Romeo, Samuel Wagner and George Beardsley (1977), ‘Social and Private Rates of Return from Industrial Innovations’, Quarterly Journal of Economics, 91 (2), May, 221–4026. Zvi Griliches (1958), ‘Research Costs and Social Returns: Hybrid Corn and Related Innovations’, Journal of Political Economy, 66 (5), October, 419–3127. Zvi Griliches (1979), ‘Issues in Assessing the Contribution of Research and Development to Productivity Growth’, Bell Journal of Economics, 10 (1), Spring, 92–11628. Zvi Griliches (1994), ‘Productivity, R&D, and the Data Constraint’, American Economic Review, 84 (1), March, 1–2329. Bruno Crépon, Emmanuel Duguet and Jacques Mairesse (1998), ‘Research, Innovation and Productivity: An Econometric Analysis at the Firm Level’, Economics of Innovation and New Technology, 7 (2), 115–5830. Bronwyn H. Hall (2005), ‘Measuring the Returns to R&D: The Depreciation Problem’, Annales D’Économie et de Statistique, Issue Spécial, 79–80 (IV), July – December, 341–81PART VIII RESEARCH AND DEVELOPMENT AND ECONOMIC GROWTH 31. Robert M. Solow (1957), ‘Technical Change and the Aggregate Production Function’, Review of Economics and Statistics, 39 (3), August, 312–2032. Charles I. Jones and John C. Williams (1998), ‘Measuring the Social Return to R&D’, Quarterly Journal of Economics, 113 (4), November, 1119–3533. Carol Corrado, Charles Hulten and Daniel Sichel (2009), ‘Intangible Capital and US Economic Growth’, Review of Income and Wealth, 55 (3), September, 661–85Index