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Technological Spillovers and Productivity in Italian Manufacturing Firms

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Abstract

We study whether a firm’s total factor productivity dynamics is positively influenced by its own R&D activity and by the technological spillovers generated at the intra- and inter-sectorial level. Our approach corrects simultaneously for the endogeneity and the selectivity biases introduced by the use of a firm’s own R&D as a regressor. A firm’s involvement in R&D activities accounts for significant productivity gains. Firms also benefit from spillovers originating from their own industries, as well as from innovative upstream sectors.

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Paper provided by Department of Economics, Loughborough University in its series Discussion Paper Series with number 2007_17.

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Date of creation: Jul 2007
Date of revision: Jul 2007
Handle: RePEc:lbo:lbowps:2007_17

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Keywords: R&D; TFP; selectivity; treatment effect;

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Cited by:
  1. OA. Carboni, 2012. "A Spatial Analysis of R&D: the Role of Industry Proximity," Working Paper CRENoS 201204, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
  2. Potters, Lesley & Ortega-Argilés, Raquel & Vivarelli, Marco, 2008. "R&D and Productivity: Testing Sectoral Peculiarities Using Micro Data," IZA Discussion Papers 3338, Institute for the Study of Labor (IZA).
  3. Anne Plunket, 2009. "Firms' inventiveness and localized vertical R&D spillovers," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 147-170.

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