The Impact of Internal R&D Expenditure, Technology Imports and Interaction Effects between Human Capital and Technology Imports on Value added in Iran’s Large Industries

Rahnamaygharamalki, Gholamhosein; Motefakerazad, Mohammadali; Ranjpur, Rea; Sadeghi, Seyedkamal

The Impact of Internal R&D Expenditure, Technology Imports and Interaction Effects between Human Capital and Technology Imports on Value added in Iran’s Large Industries

Document Type : Research Paper

Authors

gholamhosein rahnamaygharamalki

mohammadali motefakerazad

rea ranjpur

seyedkamal sadeghi

Abstract

In this study, the Impact of internal R&D expenditure, technology imports and interaction effects between human capital and technology imports on value added of Iranian large industries are investigated over the period of 1994-2008. For this purpose, an endogenous growth model is used in which production is a function of labor, capital stock, human capital, internal R&D expenditure, technology imports, multiplication of employment share of human capital and technology imports, and multiplication of internal R&D expenditure and technology imports. We estimate this model for 21 industrial groups by applying panel data approach. The results indicate that internal R&D expenditure and technology imports have a significant positive effect on value added of Iranian large industries. Also, research findings emphasize the positive effect of human capital in absorbing imported technology and consequently, increasing industry value added.

Keywords

Internal R&D Expenditure / Technology Imports / Human Capital / Iran’s Large Industries / Panel Data