IDEAS home Printed from https://ideas.repec.org/p/ssb/dispap/120.html
   My bibliography  Save this paper

R&D, Scope Economies and Company Structure: A "Not-so-Fixed Effect" Model of Plant Performance

Author

Listed:

Abstract

Some well-known correlations between R&D and performance are given a somewhat new interpretation in this paper. I present an alternative model of knowledge accumulation, with some interesting and desirable properties. Perhaps the most attractive property is that it provides a simple and less data intensive framework for empirical studies of the relationship between firm performance and R&D. This property allows me to address some new aspects of this relationship combining two rich, new sources of firm and plant-level data. Among the substantial empirical findings are (i) R&D has a positive and significant effect on performance, (ii) the estimates suggest that the appropriable part of knowledge capital depreciate at a rate of 0.2, (iii) there are visible spillover effects of R&D across LBs within a firm (economies of scope in R&D), and (iv) there are significant spillovers in R&D across firms that belong to the same interlocking group of firms.

Suggested Citation

  • Tor Jakob Klette, 1994. "R&D, Scope Economies and Company Structure: A "Not-so-Fixed Effect" Model of Plant Performance," Discussion Papers 120, Statistics Norway, Research Department.
  • Handle: RePEc:ssb:dispap:120
    as

    Download full text from publisher

    File URL: https://www.ssb.no/a/publikasjoner/pdf/DP/dp_120.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zvi Griliches, 1998. "R&D and Productivity: The Unfinished Business," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 269-283, National Bureau of Economic Research, Inc.
    2. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna & Guidi, Francesco, 2016. "R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis," Research Policy, Elsevier, vol. 45(10), pages 2069-2086.
    3. Ugur, Mehment & Vivarelli, Marco, 2020. "The role of innovation in industrial dynamics and productivity growth: a survey of the literature," GLO Discussion Paper Series 648, Global Labor Organization (GLO).
    4. Ugur, Mehmet & Guidi, Francesco & Solomon, Edna & Trushin, Eshref, 2014. "R&D investment, productivity and rates of return: A meta-analysis of the evidence on OECD firms and industries," MPRA Paper 59686, University Library of Munich, Germany, revised 22 Oct 2014.
    5. Andre Steenkamp & Mark Schaffer & Wayde Flowerday & John Goddard, 2018. "Innovation activity in South Africa: Measuring the returns to R&D," WIDER Working Paper Series 42, World Institute for Development Economic Research (UNU-WIDER).
    6. Mehmet Ugur & Marco Vivarelli, 2021. "Innovation, firm survival and productivity: the state of the art," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 30(5), pages 433-467, July.
    7. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    8. Dietmar Harhoff, 1998. "R&D and Productivity in German Manufacturing Firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 6(1), pages 29-50.
    9. Lee Branstetter, 1996. "Are Knowledge Spillovers International or Intranational in Scope? Microeconometric Evidence from the Japan and the United States," NBER Working Papers 5800, National Bureau of Economic Research, Inc.
    10. Mehmet Ugur & Marco Vivarelli, 2020. "Technology, industrial dynamics and productivity: a critical survey," DISCE - Quaderni del Dipartimento di Politica Economica dipe0011, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    11. Liv Belsby & Bjørn K. Wold, 1997. "Primary Schooling in Zambia Squeezed at Community and Household Level," Discussion Papers 191, Statistics Norway, Research Department.
    12. Branstetter, Lee, 2000. "Vertical Keiretsu and Knowledge Spillovers in Japanese Manufacturing: An Empirical Assessment," Journal of the Japanese and International Economies, Elsevier, vol. 14(2), pages 73-104, June.
    13. Andre Steenkamp & Mark Schaffer & Wayde Flowerday & John Gabriel Goddard, 2018. "Innovation activity in South Africa: Measuring the returns to R&D," WIDER Working Paper Series wp-2018-42, World Institute for Development Economic Research (UNU-WIDER).

    More about this item

    Keywords

    Productivity; R&D; Corporate structure; Microeconometrics.;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ssb:dispap:120. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: L Maasø (email available below). General contact details of provider: https://edirc.repec.org/data/ssbgvno.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.