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“Do intra- and inter-industry spillovers matter? CDM model estimates for Spain”

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Author Info

  • Esther Goya

    ()
    (Faculty of Economics, University of Barcelona)

  • Esther Vayá

    ()
    (Faculty of Economics, University of Barcelona)

  • Jordi Suriñach

    ()
    (Faculty of Economics, University of Barcelona)

Abstract

This paper uses a structural model to analyse the impact of innovation activities, including intra- and inter-industry externalities, on the productivity of Spanish firms. To the best of our knowledge, no previous paper has examined spillover effects by adopting such an approach. Here, therefore, we seek to determine the extent to which the innovations carried out by others affect a firm’s productivity. Additionally, firm’s technology level is taken into account in order to ascertain whether there are any differences in this regard between high-tech and low-tech firms both in industrial and service sectors. The database used is the Technological Innovation Panel (PITEC) which includes 8,611 firms for the year 2009. We find that low-tech firms make the most of a range of factors, including funding and belonging to a group, to increase their investment in R&D. As expected, R&D intensity has a positive impact on the probability of achieving both product and, more especially, process innovations. Finally, innovation output has a positive impact on firm’s productivity, being greater in more advanced firms in the case of process innovations. Both intra- and inter-industry spillovers have a positive impact on firm’s productivity, but this varies with the firm’s level of technology. Thus, innovations made by firms from the same sector are more important for low-tech firms than they are for their high-tech counterparts, while innovations made by the rest of the sectors have a greater impact on high-tech firms.

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File URL: http://www.ub.edu/irea/working_papers/2012/201214.pdf
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Bibliographic Info

Paper provided by University of Barcelona, Regional Quantitative Analysis Group in its series AQR Working Papers with number 201207.

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Length: 38 pages
Date of creation: Sep 2012
Date of revision: Sep 2012
Handle: RePEc:aqr:wpaper:201207

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Related research

Keywords: Productivity; innovation; industry spillovers. JEL classification: D24; O33.;

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  1. Julio Raffo & Stephane Lhuillery & Luis Miotti, 2008. "Northern and southern innovativity: a comparison across European and Latin American countries," European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 219-239.
  2. Raquel Ortega-Argilés & Lesley Potters & Marco Vivarelli, 2011. "R&D and productivity: testing sectoral peculiarities using micro data," Empirical Economics, Springer, vol. 41(3), pages 817-839, December.
  3. Raquel Ortega-Argilés & Mariacristina Piva & Lesley Potters & Marco Vivarelli, 2010. "Is Corporate R&D Investment In High-Tech Sectors More Effective?," Contemporary Economic Policy, Western Economic Association International, vol. 28(3), pages 353-365, 07.
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