Domestic vs International Spillovers: Evidence from Swedish Firm Level Data

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Domestic vs International Spillovers: Evidence from Swedish Firm Level Data

Author Info

Poldahl, Andreas (Department of Business, Economics, Statistics and Informatics)

Abstract

This paper investigates the association between total factor productivity growth and the R&D expenditures of Swedish manufacturing firms in the presence of domestic- and international R&D spillovers. The paper assumes that the principal channel of transmission of new technology is through I/O relations. Econometric evidence suggests that international as well as domestic inter-industry R&D spillovers are important determinants of firms’ productivity growth in the long run.

The R&D spillovers generated within the industry and following I/O links seem to be of minor importance in explaining productivity growth. It seems likely that within-industry productivity spillovers follow other channels than I/O flows, such as horizontal spillovers through copying of new products and processes, or labour turnover. The use of a convergence parameter is one way to check for such within-industry technology flows.

Our results indicate that a catch-up process exists by which the non-frontier firms in the Swedish manufacturing sector absorb knowledge spillovers from the leading firms in the industry. Finally, a firm’s own R&D efforts are found to be more or less positively correlated with the TFP growth, maybe the contribution from R&D efforts in some sense are underestimated. *

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Publisher Info
Paper provided by Örebro University, Swedish Business School in its series Working Papers with number 2004:9.

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Length: 27 pages
Date of creation: 14 Oct 2004
Date of revision:
Handle: RePEc:hhs:oruesi:2004_009

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Postal: Örebro University, Swedish Business School, SE - 701 82 ÖREBRO, Sweden
Phone: 019-30 30 00
Fax: 019-33 25 46
Web page: http://www.oru.se/templates/oruExtDeptIntroPage.aspx?id=3059
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Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O33 - Economic Development, Technological Change, and Growth - - Technological Change - - - Technological Change: Choices and Consequences; Diffusion Processes

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This page was last updated on 2009-12-14.

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