Previous studies have found that there exist positive effects of R＆D of industry itself and embodied technology on industries' productivity. Using R＆D capital, embodied and disembodied spillover variables, we estimated the marginal productivity of these variables. After calculating the weights of embodied and disembodied spillover variables in Korean manufacturing industries, we attempted to estimate the effect of spillovers on productivity through the transaction of the intermediate goods and the technology distances between industries.
The results of separate estimation of embodied and disembodied technology show that there exist positive spillover effects on productivity in these two spillover variables respectively. However in the case of estimating the equation which includes both embodied and disembodied variables, we got insignificant estimates. This result may be stemmed from the multicollinearity of two variables.
We could interpret the positive spillover effects as a reflection of the public nature in technology and R＆D investment, and this leads us to analyse the productivity as technology-related variables in economics.
