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Learning, internal research, and spillovers †

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Author Info
James Adams

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Abstract

This paper presents new evidence on the practice of industrial Research and Development (R&D), especially its allocation between learning and internal research, and the role of outside knowledge in reshaping this allocation. The evidence describes the sources of outside knowledge, portrays the flow of that knowledge into firms, and interprets the channels by which outside knowledge influences R&D. In this way, the paper illustrates R&D's value in dealing with disequilibria. The empirical work is based on a sample of 220 R&D laboratories owned by 115 firms in the US chemical, machinery, electrical equipment, and motor vehicle industries. The findings are consistent with the view that universities and firms generate technological opportunities in R&D laboratories. In addition to partnerships that define rather strict channels of opportunity, the paper uncovers broader effects of R&D spillovers. The results also suggest that academic spillovers drive learning about universities and that industrial spillovers drive learning about industries. Thus, externally derived opportunities reshape the rate and direction of R&D. Overall the findings paint an image of practitioners of industrial R&D reaching aggressively for opportunities rather than waiting for opportunities to come to them.

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

Volume (Year): 15 (2006)
Issue (Month): 1 (January)
Pages: 5-36
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Handle: RePEc:taf:ecinnt:v:15:y:2006:i:1:p:5-36

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Related research
Keywords: Industrial Research and Development; Academic research; Learning; Internal research; Spillovers;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Trajtenberg, M. & Bresnahan, T.F., 1992. "General Purpose Technologies: "Engines of Growth"," Papers 16-92, Tel Aviv.
    Other versions:
  2. Catherine J. Morrison Paul & Donald S. Siegel, 1999. "Scale Economies and Industry Agglomeration Externalities: A Dynamic Cost Function Approach," American Economic Review, American Economic Association, vol. 89(1), pages 272-290, March. [Downloadable!] (restricted)
  3. Richard Nelson, 1962. "The Link Between Science and Invention: The Case of the Transistor," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 549-584 National Bureau of Economic Research, Inc. [Downloadable!]
  4. Adams, James D, 1990. "Fundamental Stocks of Knowledge and Productivity Growth," Journal of Political Economy, University of Chicago Press, vol. 98(4), pages 673-702, August. [Downloadable!] (restricted)
  5. James D. Adams, 2001. "Comparative Localization of Academic and Industrial Spillovers," NBER Working Papers 8292, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  6. John L. Enos, 1962. "Invention and Innovation in the Petroleum Refining Industry," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 299-322 National Bureau of Economic Research, Inc. [Downloadable!]
  7. Mansfield, Edwin, 1995. "Academic Research Underlying Industrial Innovations:," The Review of Economics and Statistics, MIT Press, vol. 77(1), pages 55-65, February. [Downloadable!] (restricted)
  8. James D. Adams & Mircea Marcu, 2004. "R&D Sourcing, Joint Ventures and Innovation: A Multiple Indicators Approach," NBER Working Papers 10474, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
  9. Christensen, Laurits R & Jorgenson, Dale W & Lau, Lawrence J, 1973. "Transcendental Logarithmic Production Frontiers," The Review of Economics and Statistics, MIT Press, vol. 55(1), pages 28-45, February. [Downloadable!] (restricted)
  10. Zvi Griliches, 1979. "Issues in Assessing the Contribution of Research and Development to Productivity Growth," Bell Journal of Economics, The RAND Corporation, vol. 10(1), pages 92-116, Spring. [Downloadable!] (restricted)
    Other versions:
  11. Cohen, Wesley M & Klepper, Steven, 1992. "The Anatomy of Industry R&D Intensity Distributions," American Economic Review, American Economic Association, vol. 82(4), pages 773-99, September. [Downloadable!] (restricted)
  12. Kortum, Samuel & Lerner, Josh, 1999. "What is behind the recent surge in patenting?1," Research Policy, Elsevier, vol. 28(1), pages 1-22, January. [Downloadable!] (restricted)
  13. Mansfield, Edwin, 1985. "How Rapidly Does New Industrial Technology Leak Out?," Journal of Industrial Economics, Blackwell Publishing, vol. 34(2), pages 217-23, December. [Downloadable!] (restricted)
  14. William W. Gould & Jeffrey Pitblado & William Sribney, 2006. "Maximum Likelihood Estimation with Stata," Stata Press books, StataCorp LP, edition 3, number ml3, November-. [Downloadable!]
  15. James D. Adams, 1999. "The Structure Of Firm R&D, The Factor Intensity Of Production, And Skill Bias," The Review of Economics and Statistics, MIT Press, vol. 81(3), pages 499-510, August. [Downloadable!] (restricted)
  16. Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  17. Schultz, Theodore W, 1975. "The Value of the Ability to Deal with Disequilibria," Journal of Economic Literature, American Economic Association, vol. 13(3), pages 827-46, September. [Downloadable!] (restricted)
  18. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1988. "Appropriating the Returns from Industrial R&D," Cowles Foundation Discussion Papers 862, Cowles Foundation, Yale University. [Downloadable!]
  19. Klevorick, Alvin K. & Levin, Richard C. & Nelson, Richard R. & Winter, Sidney G., 1995. "On the sources and significance of interindustry differences in technological opportunities," Research Policy, Elsevier, vol. 24(2), pages 185-205, March. [Downloadable!] (restricted)
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  20. ., ., 1997. "," Journal of Accounting and Economics, Elsevier, vol. 24(2), pages 127-127, December. [Downloadable!] (restricted)
  21. James D. Adams & Adam B. Jaffe, 1996. "Bounding the Effects of R&D: An Investigation Using Matched Establishment-Firm Data," NBER Working Papers 5544, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Schmidt, Tobias & Sofka, Wolfgang, 2009. "Knowledge sourcing: legitimacy deficits for MNC subsidiaries?," Discussion Paper Series 1: Economic Studies 2009,09, Deutsche Bundesbank, Research Centre. [Downloadable!]
  2. Tobias Schmidt & Wolfgang Sofka, 2005. "Lost in Translation - Empirical Evidence for Liability of Foreignness as Barriers to Knowledge Spillovers," Industrial Organization 0512012, EconWPA. [Downloadable!]
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