In recent two decades, Research & Development considered as one of the most important methods of quick advancement of technology and supporting competitive core and innovation of producer industries by growth economists. As the aim of this study is, evaluating Research & Development spillovers on total production factor productivity using panel data and Stip Wayz test at years of 1996–2008. Here, we used data of 131 code of four-digit ISIC level of Iranian manufacturing industries. The results show that of capital (K), capital intention (I), Hirschman -Herfindal Index (HHI), research & development intension (RDI) have most positive and significant effects on total production factor productivity respectively. In this research research & development of other industries has negative and significant effect on total production factor efficiency in Iranian manufacturing industries as we can justify this negative effect by low level investment and demand-base shortage of other industries.
Research & development spillover, total production factor productivity, panel data, ISIC
