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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. 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.
    2. Álvaro Escribano & Rodolfo Stucchi, 2011. "Catching up in total factor productivity through the business cycle: Evidence from Spanish manufacturing firms," Working Papers 2011-10, Instituto Madrileño de Estudios Avanzados (IMDEA) Ciencias Sociales.
    3. ITO Keiko & Sebastien LECHEVALIER, 2008. "The evolution of the productivity dispersion of firms - A reevaluation of its determinants in the case of Japan," Discussion papers 08014, Research Institute of Economy, Trade and Industry (RIETI).
    4. Yucan Liu & C. Richard Shumway & Robert Rosenman & Virgil Eldon Ball, 2011. "Productivity growth and convergence in US agriculture: new cointegration panel data results," Applied Economics, Taylor & Francis Journals, vol. 43(1), pages 91-102.

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