Depreciation of Business R&D Capital
Published By: NATIONAL BUREAU OF ECONOMIC RESEARCH on eSS | Published Date: August , 2016This paper develops a forward-looking profit model to estimate the depreciation rates of business R&D capital. By using data from Compustat, BEA, and NSF between 1987 and 2008, and the newly developed model, it estimates both constant and time-varying industry-specific R&D depreciation rates. The estimates are the first complete set of R&D depreciation rates for major U.S. high-tech industries. Lastly, it also presents a cross-country comparison of the R&D depreciation rates between the U.S. and Japan, and finds that the results reflect the relative technological competitiveness in key industries. [Working Paper 22473]
Author(s): Wendy Li, Bronwyn Hall | Posted on: Aug 02, 2016 | Views()