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The existence of R&D spillovers: A cost function estimation with random coefficients

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  • Petri Rouvinen

Abstract

This is a study of the effects of R&D spillovers on the cost and production structures of Finnish manufacturing firms. Confidential data on firms is used to estimate a translog cost function system with random coefficients. Although the results suggest that intra-industry spillovers are present in Finnish manufacturing, the findings regarding inter-industry spillovers are inconclusive. The variable cost reduction associated with spillovers is positive, but relatively low. Spillovers reduce the demand for labor but increase the demand for materials. Spillovers also reduce the willingness to pay for capital inputs.

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Bibliographic Info

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

Volume (Year): 11 (2002)
Issue (Month): 6 ()
Pages: 525-541

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Handle: RePEc:taf:ecinnt:v:11:y:2002:i:6:p:525-541

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Related research

Keywords: R&D Spillovers; Externalities; Cost Function; Panel Data; Finnish Manufacturing; Random Coefficients;

References

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Citations

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Cited by:
  1. Bronwyn H. Hall & Jacques Mairesse & Pierre Mohnen, 2010. "Measuring the Returns to R&D," CIRANO Working Papers, CIRANO 2010s-02, CIRANO.
  2. Suetens, S., 2004. "Literature review: R&D cooperation in oligopoly with spillovers: An experimental economics approach," Open Access publications from Tilburg University, Tilburg University urn:nbn:nl:ui:12-3529827, Tilburg University.
  3. Dirk Czarnitzki & Kornelius Kraft, 2012. "Spillovers of innovation activities and their profitability," Oxford Economic Papers, Oxford University Press, vol. 64(2), pages 302-322, April.
  4. Daria Onori, 2013. "Competition and Growth: Reinterpreting their Relationship," Working Papers, HAL halshs-00806994, HAL.
  5. LEE, Keun & CHOO, Kineung & Yoon, Minho, 2013. "Comparing the Productivity Impacts of Knowledge Spillovers from Network and Arm’s Length Industries:Findings from Business Groups in Korea," IIR Working Paper, Institute of Innovation Research, Hitotsubashi University 13-15, Institute of Innovation Research, Hitotsubashi University.
  6. Liu, Ting-Kun & Chen, Jong-Rong & Huang, Cliff C.J. & Yang, Chih-Hai, 2013. "E-commerce, R&D, and productivity: Firm-level evidence from Taiwan," Information Economics and Policy, Elsevier, Elsevier, vol. 25(4), pages 272-283.
  7. Julia Hall & Grant M Scobie, 2006. "The Role of R&D in Productivity Growth: The Case of Agriculture in New Zealand: 1927 to 2001," Treasury Working Paper Series, New Zealand Treasury 06/01, New Zealand Treasury.

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