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Firms’ inventiveness and localized vertical R&D spillovers

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  • Anne Plunket

Abstract

It is well known that knowledge spillovers exist and that they generate externalities for firms undertaking R&D. Nevertheless, it still remains difficult to predict which local industrial structure may best favor the diffusion of knowledge externalities and finally innovation. In order to further investigate these issues, this paper studies vertical R&D spillovers in addition to the usual localization and urbanization externalities. The underlying hypothesis is that a firm should benefit from knowledge externalities if it is located in a geographical area close to R&D intensive users and producers identified by input/output relationships. Since urbanization as vertical economies are generated by inter-industry links, the issue is then to investigate if urbanization and user-supplier externalities are of a same nature, and thus substitutes or of a different nature and thus may play a complementary role in the firms’ innovation process. JEL Codes: L1, O3, R1, R3

Suggested Citation

  • Anne Plunket, 2009. "Firms’ inventiveness and localized vertical R&D spillovers," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 147-170.
  • Handle: RePEc:cai:jiedbu:jie_004_0147
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    References listed on IDEAS

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    Cited by:

    1. LEE, Keun & CHOO, Kineung & Yoon, Minho, 2013. "Comparing the Productivity Impacts of Knowledge Spillovers from Network and Arm’s Length Industries:Findings from Business Groups in Korea," IIR Working Paper 13-15, Institute of Innovation Research, Hitotsubashi University.

    More about this item

    Keywords

    knowledge externalities; vertical relationships; input-output; user-suppliers; R&D spillovers;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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