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The incidence between the R&D and the productivity of Slovak regions: additional evidence from alternative indicator of labor input

Ostrihoň F.

Journal of Theoretical and Applied Computer Science

2014

Vol. 8, nr 4

28--34

Presented paper expands the previous research of the various effects of components of research and development (R&D) on the productivity of 8 Slovak regions at NUTS 3 level during the period 1997-2011. The paper suggests alternative indicators for labor input (number of employees and total employment) to obtain upper and lower bound on the true value of labor elasticity of regional output. Such approach is striving to produce results of higher reliability, than those obtained by a single estimate. Thus, the paper compares the obtained panel estimates with results of previous analysis, to draw conclusions about regional production technology and its response to the changes in two components of R&D: technological progress and R&D inventories. Based on the results of the paper it is possible to assume that despite substantial effects of technological progress on regional production technology the level of R&D inventories is very unlikely to affect the regional production.