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The role of spillovers in research and development expenditure in Australian industries


  • Sasan Bakhtiari
  • Robert Breunig


Using administrative data from firms in Australia that conduct research and development (R&D), we examine how R&D activity of other firms and public institutions affect a firm's own R&D expenditure. We distinguish between the impact of peers, suppliers and clients. We examine whether geographical proximity and industrial clustering affect R&D spillovers. Overall, we detect positive effects on R&D expenditure from spillovers from peers and clients to firms that are nearby; within 25 or 50 km. R&D expenditure by academia, unlike by government bodies, has a positive influence on a firm's own R&D expenditure within state boundaries. We fail to find any significant role for industrial clusters in augmenting spillover effects.

Suggested Citation

  • Sasan Bakhtiari & Robert Breunig, 2018. "The role of spillovers in research and development expenditure in Australian industries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 27(1), pages 14-38, January.
  • Handle: RePEc:taf:ecinnt:v:27:y:2018:i:1:p:14-38
    DOI: 10.1080/10438599.2017.1290898

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    Cited by:

    1. Chiara Conti & Marco A. Marini, 2019. "Are you the right partner? R&D agreement as a screening device," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 28(3), pages 243-264, April.
    2. Rittwik Chatterjee & Srobonti Chattopadhyay & Tarun Kabiraj, 2019. "When Spillovers Enhance R&D Incentives," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 17(4), pages 857-868, December.
    3. Kabiraj, Abhishek & Kabiraj, Tarun, 2019. "Uncertain R&D Outcomes and Cooperation in R&D," MPRA Paper 94676, University Library of Munich, Germany.
    4. Marie-Laure Cabon-Dhersin & Romain Gibert, 2018. "Cooperation or non-cooperation in R&D: how should research be funded?," Post-Print hal-02006515, HAL.
    5. Chatterjee, Rittwik & Chattopadhyay, Srobonti & Kabiraj, Tarun, 2018. "When Spillovers Enhance R&D Incentives," MPRA Paper 88743, University Library of Munich, Germany.
    6. Ziesemer, Thomas, 2019. "The effects of R&D subsidies and publicly performed R&D on business R&D: A survey," MERIT Working Papers 2019-036, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    7. Chatterjee, Rittwik & Chattopadhyay, Srobonti & Kabiraj, Tarun, 2018. "Spillovers and R&D Incentive under Incomplete Information," MPRA Paper 85089, University Library of Munich, Germany.

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