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R&D, Scope Economies, and Plant Performance

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Author Info
Tor Jakob Klette

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Abstract

In this article I present an alternative specification of knowledge production and derive a structural econometric model with some desirable properties. I provide a simple and less data-intensive framework for empirical studies of the relationship between firm performance and R&D. The main empirical findings are as follows: (i) R&D has a positive effect on performance, (ii) the appropriable part of knowledge capital depreciates at a rate of .2, (iii) there are significant spillover effects of R&D across lines of business within a firm, and (iv) there are significant spillovers in R&D across firms that belong to the same interlocking group of firms.

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File URL: http://links.jstor.org/sici?sici=0741-6261%28199623%2927%3A3%3C502%3ARSEAPP%3E2.0.CO%3B2-P&origin=repec
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Publisher Info
Article provided by The RAND Corporation in its journal RAND Journal of Economics.

Volume (Year): 27 (1996)
Issue (Month): 3 (Autumn)
Pages: 502-522
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Handle: RePEc:rje:randje:v:27:y:1996:i:autumn:p:502-522

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  1. Baldwin, John R. & Gu, Wulong, 2004. "Innovation, Survival and Performance of Canadian Manufacturing Plants," Economic Analysis (EA) Research Paper Series 2004022e, Statistics Canada, Analytical Studies Branch. [Downloadable!]
  2. Heshmati, Almas & Lööf, Hans, 2003. "The link between firm-level innovation and aggregate productivity growth : a cross-country examination," ZEW Discussion Papers 03-07, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  3. Chiara Criscuolo & Jonathan E. Haskel & Matthew J. Slaughter, 2005. "Global Engagement and the Innovation Activities of Firms," NBER Working Papers 11479, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  4. Boris Lokshin & Rene Belderbos & Martin Carree, 2006. "Internal and external R&DF complements or substitutes? Evidence from a dynamic panel data model," Hi-Stat Discussion Paper Series d06-163, Institute of Economic Research, Hitotsubashi University. [Downloadable!]
  5. Nina Pavcnik, 2000. "Trade Liberalization, Exit, and Productivity Improvements: Evidence from Chilean Plants," NBER Working Papers 7852, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  6. Ulrich Doraszelski & Jordi Jaumandreu, 2007. "R&D and productivity : estimating production functions when productivity is endogenous," Economics Working Papers we078652, Universidad Carlos III, Departamento de Economía. [Downloadable!]
    Other versions:
  7. Gustavo Crespi & Chiara Criscuolo & Jonathan E. Haskel & Matthew Slaughter, 2008. "Productivity Growth, Knowledge Flows, and Spillovers," NBER Working Papers 13959, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  8. Silviano Esteve-Pérez & Juan Máñez-Castillejo & Juan Sanchis-Llopis, 2008. "Does a “survival-by-exportingâ€\x9D effect for SMEs exist?," Empirica, Springer, vol. 35(1), pages 81-104, March. [Downloadable!] (restricted)
  9. Bee Yan Aw & Mark J. Roberts & Tor Winston, 2005. "The Complementary Role of Exports and R&D Investments as Sources of Productivity Growth," NBER Working Papers 11774, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  10. Pilar Beneito, 2001. "R&D productivity and spillovers at the firms level: evidence from Spanish panel data," Investigaciones Economicas, Fundación SEPI, vol. 25(2), pages 289-313, May. [Downloadable!]
  11. James D. Adams & J. Roger Clemmons & Paula E. Stephan, 2006. "How Rapidly Does Science Leak Out?," Rensselaer Working Papers in Economics 0612, Rensselaer Polytechnic Institute, Department of Economics. [Downloadable!]
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  12. James D. Adams, 2000. "Endogenous R&D Spillovers and Industrial Research Productivity," NBER Working Papers 7484, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  13. Lööf, Hans & Heshmati, Almas, 2001. "On the Relationship between Innovation and Performance: A sensitivity Analysis," Working Paper Series in Economics and Finance 0446, Stockholm School of Economics, revised 01 Oct 2001. [Downloadable!]
    Other versions:
  14. Bronwyn Hall, 2006. "R&D, productivity and market value," IFS Working Papers W06/23, Institute for Fiscal Studies. [Downloadable!]
  15. Carmine Ornaghi, 2002. "Spillovers In Product And Process Innovation: Evidence From Manufacturing Firms," Economics Working Papers we023213, Universidad Carlos III, Departamento de Economía. [Downloadable!]
  16. Xulia González & Jordi Jaumandreu, . "Threshold effects in product R&D decisions: theoretical framework and empirical analysis," Studies on the Spanish Economy 45, FEDEA. [Downloadable!]
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  17. Tommy Clausen, 2008. "Do subsidies have positive impacts on R&D and innovation activities at the firm level?," Working Papers on Innovation Studies 20070615, Centre for Technology, Innovation and Culture, University of Oslo. [Downloadable!]
  18. James D Adams, 1997. "The Structure of Firm R&D and the Factor Intensity of Production," Working Papers 97-15, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
    Other versions:
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