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Learning by Doing and Spillovers: Evidence from Firm-Level Panel Data

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  • Salvador Barrios
  • Eric Strobl

Abstract

We extend the Bahk and Gort (1993) approach of testing for the impact of learning by doing (LBD) on firm productivity using data on a panel of Spanish manufacturing firms over the 1990-1998 period. While our results indicate evidence in support of the role of LBD, we show that this hinges on controlling for unobservable time invariant firm specific effects. Our results also suggest that spillovers from the accumulated experience within an industry can enhance firms' productivity, especially for established firms. Moreover, the level of embodied technology can improve the learning experience of some firms but only through firms' experience.

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Paper provided by FEDEA in its series Working Papers with number 2002-09.

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Handle: RePEc:fda:fdaddt:2002-09

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  1. Caballero, Ricardo J. & Lyons, Richard K., 1990. "Internal versus external economies in European industry," European Economic Review, Elsevier, Elsevier, vol. 34(4), pages 805-826, June.
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  3. Irwin, Douglas A & Klenow, Peter J, 1994. "Learning-by-Doing Spillovers in the Semiconductor Industry," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 102(6), pages 1200-1227, December.
  4. Pavlova, Anna, 2003. "Adjustment Costs, Learning-By-Doing, And Technology Adoption Under Uncertainty," Working papers, Massachusetts Institute of Technology (MIT), Sloan School of Management 4369-01, Massachusetts Institute of Technology (MIT), Sloan School of Management.
  5. J. Bradford Jensen & Robert H. McGuckin & Kevin J. Stiroh, 2001. "The Impact Of Vintage And Survival On Productivity: Evidence From Cohorts Of U.S. Manufacturing Plants," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 83(2), pages 323-332, May.
  6. Audretsch, David B, 1991. "New-Firm Survival and the Technological Regime," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 73(3), pages 441-50, August.
  7. Audretsch, David B., 1995. "Innovation, growth and survival," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 13(4), pages 441-457, December.
  8. April Mitchell Franco & Darren Filson, 2000. "Knowledge diffusion through employee mobility," Staff Report, Federal Reserve Bank of Minneapolis 272, Federal Reserve Bank of Minneapolis.
  9. Angel Estrada & J. López-Salido, 2004. "Sectoral and aggregate technology growth in Spain," Spanish Economic Review, Springer, Springer, vol. 6(1), pages 3-27, April.
  10. Laura Power, 1998. "The Missing Link: Technology, Investment, And Productivity," The Review of Economics and Statistics, MIT Press, MIT Press, vol. 80(2), pages 300-313, May.
  11. Caballero, R.J. & Lyons, R.K., 1991. "External Effects in U.S. Procyclical Productivity," Papers, Columbia - Graduate School of Business 91-19, Columbia - Graduate School of Business.
  12. Rebecca Achee Thornton & Peter Thompson, 2001. "Learning from Experience and Learning from Others: An Exploration of Learning and Spillovers in Wartime Shipbuilding," American Economic Review, American Economic Association, American Economic Association, vol. 91(5), pages 1350-1368, December.
  13. Ana Martín-Marcos & Jordi Jaumandreu, 2004. "Entry, exit and productivity growth: Spanish manufacturing during the eighties," Spanish Economic Review, Springer, Springer, vol. 6(3), pages 211-226, October.
  14. Bahk, Byong-Hong & Gort, Michael, 1993. "Decomposing Learning by Doing in New Plants," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 101(4), pages 561-83, August.
  15. Huergo, Elena & Jaumandreu, Jordi, 2004. "Firms' age, process innovation and productivity growth," International Journal of Industrial Organization, Elsevier, Elsevier, vol. 22(4), pages 541-559, April.
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Cited by:
  1. Sumit Agarwal & John C Driscoll & Xavier Gabaix & David Laibson, 2008. "Learning in the Credit Card Market," Levine's Working Paper Archive 122247000000002028, David K. Levine.
  2. Luca Colombo & Paola Labrecciosa, 2012. "Inter-firm knowledge diffusion, market power, and welfare," Journal of Evolutionary Economics, Springer, Springer, vol. 22(5), pages 1009-1027, November.
  3. Marion Dovis & Juliette Milgram-Baleix, 2009. "Trade, Tariffs and Total Factor Productivity: The Case of Spanish Firms," The World Economy, Wiley Blackwell, Wiley Blackwell, vol. 32(4), pages 575-605, 04.
  4. Malte Schwoon, 2006. "Learning-by-doing, Learning Spillovers and the Diffusion of Fuel Cell Vehicles," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-112, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2006.
  5. Kalkuhl, Matthias & Edenhofer, Ottmar & Lessmann, Kai, 2012. "Learning or lock-in: Optimal technology policies to support mitigation," Resource and Energy Economics, Elsevier, Elsevier, vol. 34(1), pages 1-23.
  6. Malte Schwoon, 2006. "A Tool to Optimize the Initial Distribution of Hydrogen Filling Stations," Working Papers, Research unit Sustainability and Global Change, Hamburg University FNU-110, Research unit Sustainability and Global Change, Hamburg University, revised Jun 2006.
  7. Lehmann, Paul & Gawel, Erik, 2013. "Why should support schemes for renewable electricity complement the EU emissions trading scheme?," Energy Policy, Elsevier, Elsevier, vol. 52(C), pages 597-607.

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