Figure l-15a 



U.S. Receipts and Payments for 

 Patents, Manufacturing Rights, 

 Licenses, Etc., 1960-74 



(Millions of Dollars) 



1960 '62 '64 '66 '68 70 72 



Figure l-15b 



U.S. Net Receipts for Patents, 

 Manufacturing Rights, Licenses, Etc., 

 by Selected Countries, 1960-74 



(Millions of Dollars) 



74 



1960 '62 



SOURCE US Department of Commerce. 



'68 



'72 



'74 



productivity (i.e.. Gross Domestic Product per 

 employed civilian) and grov^?th in manufacturing 

 productivity (i.e., output per man-hour) are 

 presented for each major developed country. An 

 approximate indicator of the role of R&D in the 

 U.S. trade balance is developed through an 

 analysis of U.S. exports and imports of manufac- 

 tured products, in terms of the R&D intensity of 

 the products involved. The indicator is used also 

 to determine the balance of trade in R&D- 

 intensive products between the United States 

 and other specific nations. 



Productivity 



The level of productivity and its rate of growth 

 can greatly influence the economic strength of 

 nations and affect living standards, costs and 

 prices, and international trading and monetary 

 arrangements — as shown by the experience of 

 many countries in recent years.-'" Productivity 

 expresses the relationship between the quantity 

 of goods and services produced (output) and the 

 quantity of labor, capital, land, energy, and other 

 resources (input) used to produce them. Over 

 time, productivity tends to grow as new 

 knowledge and new technology are embodied in 

 capital investments, as the educational levels of 

 labor forces rise, and as management skills 

 become more effective. While the effect of R&D 

 on productivity growth is not known precisely, 

 the general conclusion based on a large number 

 of studies is that the impact of R&D is "positive, 

 significant, and high".-'* 



The measurement of productivity is difficult, 

 particularly when measures are sought for the 

 purpose of international comparisons. Problems 

 arise from a diversity of sources, such as 

 differences in concept and methodology and the 

 availability of data. For these reasons, small 

 reported differences in productivity — between 

 nations and over short periods — may not be 

 significant; interpretation of the indicators, 

 therefore, should be confined to general trends. 



A relatively general and approximate measure 

 of productivity is the "real Gross Domestic 



^" Information on the role of productivity in the inter- 

 national area may be found in Productivit)/: An Internalional 

 Perspfclirc. U.S. Department of Labor, Bureau of Labor 

 Statistics, 1''74. 



■'* Reiearch and Development and Economic Growlh/ Produclivity, 

 Papers and Proceedings of a colloquium, National Science 

 Foundation (NSF 72-303). For a discussion of this 

 relationship, see the chapter entitled, "Industrial R&D and 

 Innovation" in this report. 



22 



