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On estimating a knowledge production function at the firm and sector level using patent statistics

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  • Ramani, Shyama V.
  • El-Aroui, Mhamed-Ali
  • Carrère, Myriam

Abstract

This paper proposes a definition of the knowledge base of an agent using only patent statistics. It then develops a model of a knowledge production function that can be estimated at the firm level and the sector level using the knowledge base matrix. It identifies the impact of own knowledge base, absorptive capacity to exploit intersectoral spillovers, and absorptive capacity to exploit intrasectoral spillovers, on new technology generation. It permits a study of the dynamics of knowledge generation without having to resort to additional information on the R&D activities of firms. Finally, the paper illustrates the method with the case study of new biotechnology-based knowledge creation by firms in the foods sector.

Suggested Citation

  • Ramani, Shyama V. & El-Aroui, Mhamed-Ali & Carrère, Myriam, 2008. "On estimating a knowledge production function at the firm and sector level using patent statistics," Research Policy, Elsevier, vol. 37(9), pages 1568-1578, October.
    • Handle: RePEc:eee:respol:v:37:y:2008:i:9:p:1568-1578
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    Cited by:

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    2. Luintel, Kul B. & Khan, Mosahid, 2017. "Ideas production and international knowledge spillovers: Digging deeper into emerging countries," Research Policy, Elsevier, vol. 46(10), pages 1738-1754.
    3. Spyros Arvanitis & Florian Seliger & Martin Woerter, 2020. "Knowledge Spillovers, Competition and Innovation Success," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 82(5), pages 1017-1041, October.
    4. Keith Brouhle & Brad Graham & Donna Ramirez Harrington, 2023. "Patents and P2: Innovation and Technology Adoption for Environmental Improvements," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 84(2), pages 439-474, February.
    5. Dongwoo Kang & Sandy Dall’erba, 2016. "An Examination of the Role of Local and Distant Knowledge Spillovers on the US Regional Knowledge Creation," International Regional Science Review, , vol. 39(4), pages 355-385, October.
    6. Roper, Stephen & Hewitt-Dundas, Nola, 2015. "Knowledge stocks, knowledge flows and innovation: Evidence from matched patents and innovation panel data," Research Policy, Elsevier, vol. 44(7), pages 1327-1340.
    7. Jens K. Perret, 2019. "Re-Evaluating the Knowledge Production Function for the Regions of the Russian Federation," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(2), pages 670-694, June.
    8. Almeida, Derick & Naudé, Wim & Sequeira, Tiago Neves, 2024. "Artificial Intelligence and the Discovery of New Ideas: Is an Economic Growth Explosion Imminent?," IZA Discussion Papers 16766, Institute of Labor Economics (IZA).
    9. Chatterjee, Diti & Dinar, Ariel & González-Rivera, Gloria, 2018. "An empirical knowledge production function of agricultural research and extension: The case of the University of California Cooperative Extension," Technological Forecasting and Social Change, Elsevier, vol. 134(C), pages 290-297.
    10. Kravtsov, A., 2017. "Development of the Patent-Based Researches on Innovation Processes: Analytic Review," Journal of the New Economic Association, New Economic Association, vol. 35(3), pages 144-167.
    11. Yang, Chih-Hai & Lee, Wen-Chieh, 2021. "Establishing science parks everywhere? Misallocation in R&D and its determinants of science parks in China," China Economic Review, Elsevier, vol. 67(C).
    12. Montresor, Sandro & Vezzani, Antonio, 2015. "The production function of top R&D investors: Accounting for size and sector heterogeneity with quantile estimations," Research Policy, Elsevier, vol. 44(2), pages 381-393.
    13. Crescenzi, Riccardo & Gagliardi, Luisa, 2018. "The innovative performance of firms in heterogeneous environments: The interplay between external knowledge and internal absorptive capacities," Research Policy, Elsevier, vol. 47(4), pages 782-795.
    14. Spyros Arvanitis & Florian Seliger & Martin Wörter, 2016. "Knowledge Spillovers and their Impact on Innovation Success - A New Approach Using Patent Backward Citations," KOF Working papers 16-414, KOF Swiss Economic Institute, ETH Zurich.
    15. Neves, Pedro Cunha & Sequeira, Tiago Neves, 2018. "Spillovers in the production of knowledge: A meta-regression analysis," Research Policy, Elsevier, vol. 47(4), pages 750-767.
    16. Vassilis Kanellopoulos & Kostas Tsekouras, 2023. "Innovation efficiency and firm performance in a benchmarking context," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(1), pages 137-151, January.
    17. Effelsberg, Martin, 2011. "Wissenstransfer in Innovationskooperationen: Ergebnisse einer Literaturstudie zur "Absorptive Capacity"," Arbeitspapiere 107, University of Münster, Institute for Cooperatives.
    18. Timur Gareev & Irina Peker, 2023. "Quantity versus quality in publication activity: knowledge production at the regional level," Papers 2311.08830, arXiv.org.
    19. Arkady Trachuk & Natalia Linder, 2018. "Innovation and Performance: An Empirical Study of Russian Industrial Companies," International Journal of Innovation and Technology Management (IJITM), World Scientific Publishing Co. Pte. Ltd., vol. 15(03), pages 1-22, June.
    20. Schmidt-Ehmcke, Jens & Zloczysti, Petra & Braun, Frauke G, 2010. "Innovative Activity in Wind and Solar Technology: Empirical Evidence on Knowledge Spillovers Using Patent Data," CEPR Discussion Papers 7865, C.E.P.R. Discussion Papers.
    21. Acosta, Manuel & Coronado, Daniel & Toribio, Mª Rosario, 2011. "The use of scientific knowledge by Spanish agrifood firms," Food Policy, Elsevier, vol. 36(4), pages 507-516, August.
    22. Sergey Baranov & Tatiana Skufina & Vera Samarina, 2023. "Influence of Underutilization of Production Capacities on the Dynamics of Russian GDP: An Assessment on the Basis of Production Functions," JRFM, MDPI, vol. 16(3), pages 1-10, March.

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