The effect of domestic R&D stock and R&D stock spillovers on total factor productivity growth of agriculture sector in Iran

Based on endogenous growth models, domestic research and development activities (R&D), foreign R&D spillover and human capital can cause technical progress and improving product′s quality, enhancing total factor productivity growth and finally lead to enhance competitiveness power of agriculture sector. Almost the innovation and invention costs in agriculture sector are high, but since its nature is from knowledge, it spreads out with low costs. Therefore foreign research and development spillovers cause to transfer of technology and enhancing total factor productivity in different channels, which some of main channels are import of inputs, intermediate and capital goods. Thus, in respect of making food security and increasing competitiveness power in agriculture sector, the aim of this study is to determine the role of domestic and foreign research and development activities (via technologies that appeared in imported inputs, intermediate and capital goods) and human capital on total factor productivity growth in agriculture sector during 1968-2010. The results show that domestic research and development stocks, human capital and foreign research and development (G7 commercial partnerships) have significant and positive effect on total factors productivity in Iran''s agriculture sector. Because more educating of employees along expanding domestic research and development activities, will make a better field for attracting research and development spillovers of commercial partnerships and enhancing total factor productivity in agriculture sector.