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Productivity Spillovers of R&D in Sweden

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  • Ejermo, Olof

    ()
    (CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology)

Abstract

Although Sweden is one of the most R&D-intensive OECD-countries, the importance of R&D spillovers in the country has not been systematically analyzed. This paper employs a cross-sectional dataset of 264 R&D-performing Swedish firms from 1996-97. With this set, knowledge production functions are estimated, where industry groups are treated as subsamples. In addition, 160,614 non R&D-performing firms are used to examine the effects of R&D spillovers also among non R&D-performers. The estimations use three different weight methods for R&D that spills over from other industries: two input-output measures and a technology flow matrix in the spirit of Jaffe (1986). The results indicate that R&D-performing firms gain in Total Factor Productivity from their own R&D. In two of the three weighing matrices spillovers from R&D result in higher Total Factor Productivity among R&D-performers. Among non R&D-performers, the Total Factor Productivity effect of R&D-spillovers is robustly positive and significant across specifications. Examination of the social returns of R&D from specific industries, one at a time, on other industries does not reveal substantial social effects beyond the effect on the own firm. It is reasoned that the most likely reason for the small size of R&D-spillovers rests in the Swedish corporate structure, with most R&D being conducted by large multinationals.

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Bibliographic Info

Paper provided by Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies in its series Working Paper Series in Economics and Institutions of Innovation with number 15.

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Length: 29 pages
Date of creation: 29 Nov 2004
Date of revision:
Handle: RePEc:hhs:cesisp:0015

Contact details of provider:
Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Phone: +46 8 790 95 63
Web page: http://www.infra.kth.se/cesis/
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Keywords: Interindustry R&D spillovers; total factor productivity; rate of return to R&D; Sweden;

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References

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  1. Synnove Vuori, 1997. "Interindustry Technology Flows and Productivity in Finnish Manufacturing," Economic Systems Research, Taylor & Francis Journals, vol. 9(1), pages 67-80.
  2. Bart Verspagen, 1997. "Estimating international technology spillovers using technology flow matrices," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 133(2), pages 226-248, 06.
  3. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
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  7. Jaffe, Adam B, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value," American Economic Review, American Economic Association, vol. 76(5), pages 984-1001, December.
  8. Aghion, P. & Howitt, P., 1989. "A Model Of Growth Through Creative Destruction," Working papers 527, Massachusetts Institute of Technology (MIT), Department of Economics.
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  12. Scherer, F M, 1982. "Inter-Industry Technology Flows and Productivity Growth," The Review of Economics and Statistics, MIT Press, vol. 64(4), pages 627-34, November.
  13. Bart Los & Bart Verspagen, 2000. "R&D spillovers and productivity: Evidence from U.S. manufacturing microdata," Empirical Economics, Springer, vol. 25(1), pages 127-148.
  14. Wolff, Edward N. & Ishaq Nadiri, M., 1993. "Spillover effects, linkage structure, and research and development," Structural Change and Economic Dynamics, Elsevier, vol. 4(2), pages 315-331, December.
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  19. Braconier, Henrik & Ekholm, Karolina & Ulltveit-Moe, Karen-Helene, 2000. "Does FDI Work as a Channel for R&D Spillovers? Evidence Based on Swedish Data," CEPR Discussion Papers 2469, C.E.P.R. Discussion Papers.
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Citations

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Cited by:
  1. Andrew Sharpe, 2007. "Lessons for Canada from International Productivity Experience," International Productivity Monitor, Centre for the Study of Living Standards, vol. 14, pages 20-37, Spring.
  2. Andersson, Martin & Ejermo, Olof, 2004. "How does Accessibility to Knowledge Sources affect the Innovativeness of Corporations? - Evidence from Sweden," Working Paper Series in Economics and Institutions of Innovation 3, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
  3. Andreas Poldahl, 2006. "Domestic vs. International Spillovers: Evidence from Swedish Firm Level Data," Journal of Industry, Competition and Trade, Springer, vol. 6(3), pages 277-294, December.
  4. Poldahl, Andreas, 2004. "Domestic vs. International Spillovers: Evidence from Swedish Firm Level Data," Working Paper Series 200, Trade Union Institute for Economic Research.
  5. Andersson, Martin & Ejermo, Olof, 2004. "Sectoral Knowledge Production in Swedish Regions 1993-1999," Working Paper Series in Economics and Institutions of Innovation 5, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.

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