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A Spatial Analysis of R&D: the Role of Industry Proximity

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  • OA. Carboni

Abstract

This paper employs individual firm data in order to check the existence of industry-spatial effects alongside other microeconomic determinants of R&D investment. Spatial proximity is defined by a measure of firms’ industry distance based on trade intensity between sectors. The spatial model specified here refers to the combined spatial autoregressive model with autoregressive disturbances (SARAR). In modelling the outcome for each location as dependent on a weighted average of the outcomes of other locations, outcomes are determined simultaneously. The results of the spatial two stage least square estimation suggest that in their R&D decision firms benefit from spillovers originating from neighbouring industries.

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Bibliographic Info

Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 201204.

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Date of creation: 2012
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Handle: RePEc:cns:cnscwp:201204

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Keywords: spatial weights; spatial dependence; spatial models; r&d;

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References

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  1. Michael Funke & Annekatrin Niebuhr, 2000. "Regional Geographic R&D Spillovers and Economic Growth," Quantitative Macroeconomics Working Papers 20007, Hamburg University, Department of Economics.
  2. Michael J. Orlando, 2004. "Measuring Spillovers from Industrial R&D: On the Importance of Geographic and Technological Proximity," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 777-786, Winter.
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  26. OA. Carboni, 2009. "An Empirical investigation of the Determinants of R&D Cooperation," Working Paper CRENoS 200909, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  27. Claudio A. Piga & Giuseppe Medda, 2007. "Technological Spillovers and Productivity in Italian Manufacturing Firms," Working Paper Series 08-07, The Rimini Centre for Economic Analysis, revised Jul 2007.
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Cited by:
  1. OA. Carboni & C. Detotto, 2013. "The economic consequences of crime in Italy," Working Paper CRENoS 201303, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

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