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Reconsidering the Effects of Intranational and nternational R&D Spillovers on Productivity Growth: Firm-level Evidence from Japan

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  • Kozo Kiyota

Abstract

Surprisingly, nearly 70 percent of Japanese manufacturing firms do not invest in Research and Development (R&D). Using firm-level longitudinal data in Japan, this paper asks why many firms can achieve high productivity growth without any R&D investments. We found the positive effects of intranational and international R&D spillovers on productivity growth both at the firm level (between a parent firm and its affiliate) and the industry level (among firms in the same industry). The effects of international R&D spillovers are much stronger than those of intranational spillovers. Even firms in developed countries like Japan have benefit from international R&D spillovers.

Suggested Citation

  • Kozo Kiyota, 2006. "Reconsidering the Effects of Intranational and nternational R&D Spillovers on Productivity Growth: Firm-level Evidence from Japan," Discussion papers 06001, Research Institute of Economy, Trade and Industry (RIETI).
    • Handle: RePEc:eti:dpaper:06001
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    References listed on IDEAS

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    Cited by:

    1. Marcus NOLAND, 2007. "From Industrial Policy to Innovation Policy: Japan's Pursuit of Competitive Advantage," Asian Economic Policy Review, Japan Center for Economic Research, vol. 2(2), pages 251-268, December.
    2. Sebastien Lechevalier, 2007. "The diversity of Capitalism and Heterogeneity of Firms – A Case Study of Japan during the Lost Decade," Post-Print halshs-00402911, HAL.
    3. Keiko Ito & Sébastien Lechevalier, 2009. "The evolution of the productivity dispersion of firms: a reevaluation of its determinants in the case of Japan," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 145(3), pages 405-429, October.
    4. Ali-Yrkkö, Jyrki & Deschryvere, Matthias, 2008. "Domestic R&D Employment Effects of Offshoring R&D Tasks: Some Empirical Evidence from Finland," Discussion Papers 1163, The Research Institute of the Finnish Economy.

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