Adirek Vajrapatkul
ABSTRACT
This work analyzed how increased patent applications of resident and non-resident as well as research and development improve manufacturing value added in cross-country comparisons by using OLS and the quantile regression estimation method with the 2020 data of 45 countries downloaded from the World Bank database. The results of OLS and quantile regression are compared, and it is discovered that the quantile method is more appropriate. It was revealed from quantile analysis that the effects of patent applications of resident and non-resident as well as research and development are not identical throughout the quantiles. That is, patent applications of resident and non-resident as well as research and development significantly induce manufacturing value in any country, but patent applications of resident effectiveness decreases at higher levels of manufacturing value added, while patent applications of non-resident and research and development effectiveness increase at higher levels of manufacturing value added. The policy implication is that to improve manufacturing value added, it is important to encourage all patent applications and research and development within the country.
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Index Terms
- Cross-Country Manufacturing Value Added Improvement in the Quantile Regression
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