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Inter-Industry Strategic R&D and Supplier-Demander Relationships

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  • Andrew C. Chang

    (University of California, Irvine)

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    Abstract

    This paper investigates if the R&D of an industry changes due to the R&D of an industry's suppliers and/or demanders. Using an annual industry-level panel of manufacturing R&D in the United States, I find that regressing the R&D of an industry on the lagged values of another industry's R&D suggests R&D comovement between industries with a strong supplier-demander relationship. Variance decompositions indicate that the R&D of an industry has high forecasting power over the R&D variance of another industry if the two industries share a strong supplier-demander relationship. © 2013 The President and Fellows of Harvard College and the Massachusetts Institute of Technology.

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    Bibliographic Info

    Article provided by MIT Press in its journal Review of Economics and Statistics.

    Volume (Year): 95 (2013)
    Issue (Month): 2 (May)
    Pages: 491-499

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    Handle: RePEc:tpr:restat:v:95:y:2013:i:2:p:491-499

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    Related research

    Keywords: inter-industry comovement; input-output tables; inter-industry linkages; research and development; R&D;

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