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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

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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.

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Paper provided by Research Institute of Economy, Trade and Industry (RIETI) in its series Discussion papers with number 06001.

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Length: 28 pages
Date of creation: Jan 2006
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Handle: RePEc:eti:dpaper:06001

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  22. Robert J. Barro & Paul Romer, 1993. "Economic Growth," NBER Books, National Bureau of Economic Research, Inc, number barr93-1.
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  24. Branstetter, Lee G., 2001. "Are knowledge spillovers international or intranational in scope?: Microeconometric evidence from the U.S. and Japan," Journal of International Economics, Elsevier, vol. 53(1), pages 53-79, February. [Downloadable!] (restricted)
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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. ITO Keiko & Sebastien LECHEVALIER, 2008. "The evolution of the productivity dispersion of firms - A reevaluation of its determinants in the case of Japan," Discussion papers 08014, Research Institute of Economy, Trade and Industry (RIETI). [Downloadable!]
  2. Jyrki Ali-Yrkkö & Matthias Deschryvere, 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. [Downloadable!]
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