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Are Knowledge Spillovers Driving the Convergence of Productivity among Firms?

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  • Michael K. Fung
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    Abstract

    This study evaluates the impact of knowledge spillovers on the convergence of productivity among firms. With the use of patent citation data, knowledge spillovers are decomposed into intra- and inter-industry spillovers, and internal knowledge flows. The findings from this study suggest that each firm is converging to its own steady-state productivity growth rate, which is conditional on the firm's R&D efforts and the intensity of intra-industry spillovers it receives. Moreover, if technology followers and leaders invest equally in R&D activities, the followers will eventually catch up with the leaders because the former tend to be the ones who receive knowledge spillovers from the latter. Copyright (c) The London School of Economics and Political Science 2005.

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    Bibliographic Info

    Article provided by London School of Economics and Political Science in its journal Economica.

    Volume (Year): 72 (2005)
    Issue (Month): 286 (05)
    Pages: 287-305

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    Handle: RePEc:bla:econom:v:72:y:2005:i:286:p:287-305

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    Cited by:
    1. Yucan Liu & C. Richard Shumway & Robert Rosenman & V. Eldon Ball, 2008. "Productivity Growth and Convergence in U.S. Agriculture: New Cointegration Panel Data Results," Working Papers 2008-4, School of Economic Sciences, Washington State University.
    2. Keiko Ito & Sébastien Lechevalier, 2009. "The evolution of the productivity dispersion of firms: a reevaluation of its determinants in the case of Japan," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 145(3), pages 405-429, October.
    3. Alvaro Escribano & Rodolfo Stucchi, 2008. "Catching up in total factor productivity through the business cycle : evidence from Spanish manufacturing surveys," Economics Working Papers we085125, Universidad Carlos III, Departamento de Economía.
    4. Szabolcs Blazsek & Alvaro Escribano, 2010. "Knowledge spillovers in U.S. patents: A dynamic patent intensity model with secret common innovation factors," Post-Print peer-00732533, HAL.

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