Higher Return to R&D in U.S than in Japan and Europe
The following may be further support for Martin Neil Baily's claim that the U.S. is more productive than Europe and Japan because the U.S. is more open to creative destruction.
<615> . . ., most reserachers conclude that the rates of return to R&D are comparable magnitudes in different countries. This is confirmed by our <616> meta-analysis. However, the elasticities are significantly lower in Europe and Japan, as compared with the USA. (pp. 615-616)
Source: Wieser, Robert. "Research and Development Productivity and Spillovers: Empirical Evidence at the Firm Level." Journal of Economic Surveys 19, no. 4 (2005): 587-621.
Also see: Baily, Martin Neil. "Macroeconomic Implications of the New Economy." Proceedings, Federal Reserve Bank of the Kansas City (2001): 201-268. (Especially see graph on p. 220) Martin Feldstein's Jackson Hole presentation, was also supportive of the Baily claim.
