An analysis of the source and nature of technical change: The case of US agriculture

This paper proposes a methodology to investigate the process of technical change with a focus on the dynamic effects of R&D investments on productivity, and on the induced innovation hypothesis for both inputs and outputs. The approach builds on a nonparametric representation of the underlying technology. An application to U.S. agriculture is presented. By distinguishing between private and public R&D investments. the analysis provides useful insights into the source and the dynamic nature of technical progress.