R-AND-D, TECHNOLOGICAL-PROGRESS AND EFFICIENCY CHANGE IN INDUSTRIAL ACTIVITIES

The objective of this paper is to estimate total factor productivity g rowth (TFP) in an international and sectoral setting using two alterna tive approaches based on the estimation of parametric stochastic front iers and non-parametric production frontiers (DEA). The TFP is decompo sed into two components, technological progress and efficiency change, that can also be interpreted as the results of the innovation and cat ching-up process, respectively. Finally their relationship is tested w ith a set of potential explanatory variables that includes R&D expendi tures, international competition, and structural characteristics. It a ppears that the distinction between technological and efficiency perfo rmances does matter and must be taken into account in the design of in dustrial policy.