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International R&D Spillovers: An Empirical Study

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Author Info
Charbel Macdissi
Syoum Negassi
Abstract

The existence of R&D spillovers or externalities i.e. the effects of firms' research activities on others firms activities was theoretically established by Arrow 1962a, but few empirical studies have addressed their effects on firm's economic performance ( i.e. productivity growth) and technological performance. In an open economy, firms' economic and technological performance depends on the position of these firms in their national and international technological environment. The main focus of this paper is on identifying the different channels through which international technology spillovers occurs between firms. Our statistical and econometric analysis determine that spillovers drive the productivity growth rates of individual firms. Thus, using a pooling method based on segmentation of bunched (or grouped by industry) individuals rather than those of usual individuals panel models, this empirical study shows that the international spillovers account for a substantial fraction of the variation in firm productivity growth. The estimated coefficients obtained for the classical variables (R&D and Human capital) are comparable to those obtained in the literature.

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Article provided by Taylor and Francis Journals in its journal Economics of Innovation and New Technology.

Volume (Year): 11 (2002)
Issue (Month): 2 (January)
Pages: 77-91
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Handle: RePEc:taf:ecinnt:v:11:y:2002:i:2:p:77-91

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Related research
Keywords: International Spillovers; Externalities; Economic Performance; Productivity Growth; Innovation Output; Random Coefficient Method;

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  3. Griliches, Zvi, 1990. "Patent Statistics as Economic Indicators: A Survey," Journal of Economic Literature, American Economic Association, vol. 28(4), pages 1661-1707, December. [Downloadable!] (restricted)
    Other versions:
  4. Bernstein, Jeffrey I, 1989. "The Structure of Canadian Inter-industry R&D Spillovers, and the Rates of Return to R&D," Journal of Industrial Economics, Blackwell Publishing, vol. 37(3), pages 315-28, March. [Downloadable!] (restricted)
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  7. Gandal, N. & Scotchmer, S., 1989. "Coordinating Research Through Research Joint Ventures," Papers e-89-27, Stanford - Hoover Institution.
  8. Perez-Castrillo, J. David & Sandonis, Joel, 1997. "Disclosure of know-how in research joint ventures," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 51-75, February. [Downloadable!] (restricted)
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  10. Mitchell, Will & Singh, Kulwant, 1992. "Incumbents' use of pre-entry alliances before expansion into new technical subfields of an industry," Journal of Economic Behavior & Organization, Elsevier, vol. 18(3), pages 347-372, August. [Downloadable!] (restricted)
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  13. De Bondt, Raymond, 1997. "Spillovers and innovative activities," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 1-28, February. [Downloadable!] (restricted)
  14. Braga, Helson & Willmore, Larry, 1991. "Technological Imports and Technological Effort: An Analysis of Their Determinants in Brazilian Firms," Journal of Industrial Economics, Blackwell Publishing, vol. 39(4), pages 421-32, June. [Downloadable!] (restricted)
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  16. Vickers, John, 1985. "Pre-emptive patenting, joint ventures, and the persistence of oligopoly," International Journal of Industrial Organization, Elsevier, vol. 3(3), pages 261-273, September. [Downloadable!] (restricted)
  17. repec:fth:harver:1473 is not listed on IDEAS
  18. Kesteloot, Katrien & Veugelers, Reinhilde, 1995. "Stable R&D Cooperation with Spillovers," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 4(4), pages 651-72, Winter.
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