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A Spatial Analysis of R&D: the Role of Industry Proximity



This paper employs individual firm data in order to check the existence of industry-spatial effects alongside other microeconomic determinants of R&D investment. Spatial proximity is defined by a measure of firms' industry distance based on trade intensity between sectors. The spatial model specified here refers to the combined spatial autoregressive model with autoregressive disturbances (SARAR). In modelling the outcome for each location as dependent on a weighted average of the outcomes of other locations, outcomes are determined simultaneously. The results of the spatial two stage least square estimation suggest that in their R&D decision firms benefit from spillovers originating from neighbouring industries.

Suggested Citation

  • 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.
  • Handle: RePEc:cns:cnscwp:201204

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    References listed on IDEAS

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    Cited by:

    1. Cardamone, Paola, 2014. "R&D, spatial proximity and productivity at firm level: evidence from Italy," MPRA Paper 57149, University Library of Munich, Germany.
    2. Oliviero A. Carboni & Claudio Detotto, 2016. "The economic consequences of crime in Italy," Journal of Economic Studies, Emerald Group Publishing, vol. 43(1), pages 122-140, January.
    3. OA Carboni & G. Medda, 2017. "Do Investment and Innovation Boost Export? An Analysis on European Firms," Working Paper CRENoS 201708, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.

    More about this item


    spatial weights; spatial dependence; spatial models; r&d;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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