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Measuring Knowledge Spillovers: A Non-appropriable Returns Perspective

Author

Listed:
  • Jian Li

    (Department of International Economics and Trade, School of Economics, Nanjing University
    Department of Economics, School of Economics and Management, Tsinghua University)

  • Kunrong Shen

    (School of Economics, Nanjing Univerisity)

  • Ru Zhang

    (Department of Economics, University of California)

Abstract

A new approach is developed to measure knowledge spillovers by means of proportion of non-appropriable returns to social returns, assuming no specific forms of production and knowledge functions. It is complicated theoretically, but very simple and practical empirically. Using PWT 6.3, we find that: 1. the measure of spillovers is nonlinear to income; 2. spillovers do not exist when income is low, but do exist in higher income groups; 3. the elasticity of knowledge is nonlinear to income; 4. spillovers exist even when the elasticity of output to capital is roughly close to direct measure of capital's share.

Suggested Citation

  • Jian Li & Kunrong Shen & Ru Zhang, 2011. "Measuring Knowledge Spillovers: A Non-appropriable Returns Perspective," Annals of Economics and Finance, Society for AEF, vol. 12(2), pages 265-293, November.
    • Handle: RePEc:cuf:journl:y:2011:v:12:i:2:p:265-293
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    References listed on IDEAS

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    Cited by:

    1. Matthias Firgo & Peter Mayerhofer, 2015. "Wissensintensive Unternehmensdienste, Wissens-Spillovers und regionales Wachstum. Teilprojekt 1: Wissens-Spillovers und regionale Entwicklung – Welche strukturpolitische Ausrichtung optimiert das Wach," WIFO Studies, WIFO, number 58342, April.
    2. Matthias Firgo & Peter Mayerhofer, 2015. "Wissens-Spillovers und regionale Entwicklung - welche strukturpolitische Ausrichtung optimiert des Wachstum?," Working Paper Reihe der AK Wien - Materialien zu Wirtschaft und Gesellschaft 144, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik.
    3. Andrea Bonaccorsi & Cinzia Daraio, 2013. "Knowledge spillover effects at the sub-regional level. Theory and estimation," DIAG Technical Reports 2013-13, Department of Computer, Control and Management Engineering, Universita' degli Studi di Roma "La Sapienza".

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    More about this item

    Keywords

    Knowledge spillovers; Measure; Non-appropriable returns; Capital's share; Dynamic OLS;
    All these keywords.

    JEL classification:

    • D62 - Microeconomics - - Welfare Economics - - - Externalities
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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