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Spillovers in product and process innovation: evidence from manufacturing firms

  • Ornaghi, Carmine

This paper proposes a new empirical approach to assess the impact of knowledge spillovers on firms' productivity and demand. I consider a model where process innovations spillovers to other firms raise firms relative efficiency and technological diffusion of product innovations enhances firms' demand. By modelling knowledge capital as a function of own investment in R\ and D and spillovers, I can compare the impact of these two complementary sources of knowledge on both the supply and the demand side. The results obtained confirm the findings already highlighted by previous empirical studies that technological externalities affect significantly firms' productivity growth. The new result obtained is that technological diffusion of product innovations is larger than the one deriving from process innovations, both in magnitude and pervasiveness.

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Paper provided by Universidad Carlos III de Madrid. Departamento de Economía in its series UC3M Working papers. Economics with number we023213.

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Date of creation: Feb 2002
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Handle: RePEc:cte:werepe:we023213
Contact details of provider: Web page: http://www.eco.uc3m.es/

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