the impact of internal r&d expenditure, technology imports and interaction effects between human capital and technology imports on value added in iran’s large industries

in this study, the impact of internal r&d; expenditure, technology imports and interaction effects between human capital and technology imports on value added of iranian large industries are investigated over the period of 1994-2008. for this purpose, an endogenous growth model is used in which production is a function of labor, capital stock, human capital, internal r&d; expenditure, technology imports, multiplication of employment share of human capital and technology imports, and multiplication of internal r&d; expenditure and technology imports. we estimate this model for 21 industrial groups by applying panel data approach. the results indicate that internal r&d; expenditure and technology imports have a significant positive effect on value added of iranian large industries. also, research findings emphasize the positive effect of human capital in absorbing imported technology and consequently, increasing industry value added.