Comparing the Productivity Impacts of Knowledge Spillovers from Network and Arm’s Length Industries:Findings from Business Groups in Korea
Given the increasing significance of knowledge spillovers in innovation, this study investigates and compares knowledge spillovers from arm’s length firms in the industries (market) with those from other sister firms in the same business group (network). By dividing the knowledge pool into pools within and outside a sector to which a firm belongs, we re-examine the ongoing debate on the relative size of the intra- versus inter-sector spillovers, and address a new question on the relative size of spillovers from networks compared with those from markets. We find that although both intra- and inter-sector spillovers are significant, no evidence proves the dominance of either type of spillover, whether the spillover is from industries or from networks. More importantly, we find that spillovers from networks are greater than those from industries regardless of whether the comparison was made between intra- and intra-, inter- and inter-, intra- and inter, or interand intra-sector spillovers. Results imply that knowledge spillover is not automatic but subject to limitations related to the tacitness of knowledge, and that certain types of knowledge can be transferred only through direct interaction, which is more prevalent within a network organization such as a business group.
|Date of creation:||Aug 2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.iir.hit-u.ac.jp/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Kugler, Maurice, 2006.
"Spillovers from foreign direct investment: Within or between industries?,"
Journal of Development Economics,
Elsevier, vol. 80(2), pages 444-477, August.
- Maurice Kugler, 2006. "Spillovers From Foreign Direct Investment:Within Or Between Industries?," BORRADORES DE ECONOMIA 003523, BANCO DE LA REPÚBLICA.
- Maurice Kugler, . "Spillovers from Foreign Direct Investment: Within or between Industries?," Borradores de Economia 369, Banco de la Republica de Colombia.
- Nigel Pain, 2000.
"Inward investment and technical progress in the United Kingdom manufacturing sector,"
NIESR Discussion Papers
167, National Institute of Economic and Social Research.
- Hubert, Florence & Pain, Nigel, 2001. "Inward Investment and Technical Progress in the United Kingdom Manufacturing Sector," Scottish Journal of Political Economy, Scottish Economic Society, vol. 48(2), pages 134-47, May.
- Petri Rouvinen, 2002. "The existence of R&D spillovers: A cost function estimation with random coefficients," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 11(6), pages 525-541.
- Gerald Marschke & Jinyoung Kim, 2001.
"Labor Mobility of Scientists, Technological Diffusion, and the Firm's Patenting Decision,"
01-03, University at Albany, SUNY, Department of Economics.
- Jinyoung Kim & Gerald Marschke, 2005. "Labor Mobility of Scientists, Technological Diffusion, and the Firm's Patenting Decision," RAND Journal of Economics, The RAND Corporation, vol. 36(2), pages 298-317, Summer.
- Raut, Lakshmi K., 1995. "R & D spillover and productivity growth: Evidence from Indian private firms," Journal of Development Economics, Elsevier, vol. 48(1), pages 1-23, October.
- d'Aspremont, Claude & Jacquemin, Alexis, 1988.
"Cooperative and Noncooperative R&D in Duopoly with Spillovers,"
American Economic Review,
American Economic Association, vol. 78(5), pages 1133-37, December.
- d'ASPREMONT, Claude & JACQUEMIN, Alexis, . "Cooperative and noncooperative R&D in duopoly with spillovers," CORE Discussion Papers RP 823, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Kock, Carl J & Guillen, Mauro F, 2001. "Strategy and Structure in Developing Countries: Business Groups as an Evolutionary Response to Opportunities for Unrelated Diversification," Industrial and Corporate Change, Oxford University Press, vol. 10(1), pages 77-113, March.
- Jaffe, Adam B, 1986.
"Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value,"
American Economic Review,
American Economic Association, vol. 76(5), pages 984-1001, December.
- Adam B. Jaffe, 1986. "Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits and Market Value," NBER Working Papers 1815, National Bureau of Economic Research, Inc.
- Zvi Griliches, 1998.
"The Search for R&D Spillovers,"
in: R&D and Productivity: The Econometric Evidence, pages 251-268
National Bureau of Economic Research, Inc.
- Adam B. Jaffe & Manuel Trajtenberg, 1998.
"International Knowledge Flows: Evidence from Patent Citations,"
NBER Working Papers
6507, National Bureau of Economic Research, Inc.
- Adam Jaffe & Manuel Trajtenberg, 1999. "International Knowledge Flows: Evidence From Patent Citations," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 8(1-2), pages 105-136.
- Jaffe, A.B. & Trajtenberg, M., 1998. "International Knowledge Flows: Evidence from Patent Citation," Papers 11-98, Tel Aviv.
- Henry Nieuwenhuijsen & André van Stel, 2002.
"Knowledge Spillovers and Economic Growth; an analysis using data of Dutch regions in the period 1987-1995,"
Scales Research Reports
N200203, EIM Business and Policy Research.
- Adriaan Van Stel & Henry Nieuwenhuijsen, 2004. "Knowledge Spillovers and Economic Growth: An Analysis Using Data of Dutch Regions in the Period 1987-1995," Regional Studies, Taylor & Francis Journals, vol. 38(4), pages 393-407.
- Wuyts, S.H.K. & Colombo, M. & Dutta, S. & Nooteboom, B., 2005.
"Empirical Tests of Optimal Cognitive Distance,"
2005-45, Tilburg University, Center for Economic Research.
- Wuyts, S.H.K. & Colombo, M.G. & Dutta, S. & Nooteboom, B., 2004. "Empirical Tests Of Optimal Cognitive Distance," ERIM Report Series Research in Management ERS-2004-007-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
- Burak Dindaroglu, 2010. "Intra-Industry Knowledge Spillovers and Scientific Labor Mobility," Discussion Papers 10-01, University at Albany, SUNY, Department of Economics.
- Sasidharan, Subash, 2006.
"Foreign Direct Investment and Technology Spillovers: Evidence from The Indian Manufacturing Sector,"
MERIT Working Papers
010, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- Subash Sasidharan, 2006. "Foreign Direct Investment and Technology Spillovers:Evidence from the Indian Manufacturing Sector," Working Papers id:448, eSocialSciences.
- Keld Laursen & Valentina Meliciani, 1999.
"The Importance of Technology Based Inter-sectoral Linkages for Market Share Dynamics,"
DRUID Working Papers
99-10, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Keld Laursen & Valentina Meliciani, 2000. "The importance of technology-based intersectoral linkages for market share dynamics," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 136(4), pages 702-723, December.
- Jaffe, Adam B & Trajtenberg, Manuel & Henderson, Rebecca, 1993.
"Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations,"
The Quarterly Journal of Economics,
MIT Press, vol. 108(3), pages 577-98, August.
- Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," NBER Working Papers 3993, National Bureau of Economic Research, Inc.
- Jaffe, A.B. & Trajtenberg, M., 1992. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," Papers 14-92, Tel Aviv.
- Richard Harris & Catherine Robinson, 2004. "Productivity Impacts and Spillovers from Foreign Ownership in the United Kingdom," National Institute Economic Review, National Institute of Economic and Social Research, vol. 187(1), pages 58-75, January.
- George, Rejie & Kabir, Rezaul, 2008.
"Business groups and profit redistribution: A boon or bane for firms?,"
Journal of Business Research,
Elsevier, vol. 61(9), pages 1004-1014, September.
- George, R. & Kabir, M.R. & Douma, S.W., 2004. "Business Groups and Profit Redistribution : A Boon or Bane for Firms," Discussion Paper 2004-124, Tilburg University, Center for Economic Research.
- Smarzynska, Beata K., 2002.
"Does foreign direct investment increase the productivity of domestic firms : in search of spillovers through backward linkages,"
Policy Research Working Paper Series
2923, The World Bank.
- Beata Smarzynska Javorcik, 2004. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers Through Backward Linkages," American Economic Review, American Economic Association, vol. 94(3), pages 605-627, June.
- Beata K. Smarzynska, 2003. "Does Foreign Direct Investment Increase the Productivity of Domestic Firms? In Search of Spillovers through Backward Linkages," William Davidson Institute Working Papers Series 548, William Davidson Institute at the University of Michigan.
- Coe, D.T. & Helpman, E., 1993.
"International R&D Spillovers,"
5-93, Tel Aviv.
- Suzumura, Kotaro, 1992. "Cooperative and Noncooperative R&D in an Oligopoly with Spillovers," American Economic Review, American Economic Association, vol. 82(5), pages 1307-20, December.
- Anne Plunket, 2009. "Firms’ inventiveness and localized vertical R&D spillovers," Journal of Innovation Economics, De Boeck Université, vol. 0(2), pages 147-170.
- Corinne Autant‐Bernard & James P. LeSage, 2011. "Quantifying Knowledge Spillovers Using Spatial Econometric Models," Journal of Regional Science, Wiley Blackwell, vol. 51(3), pages 471-496, 08.
- Pierre Desrochers & Samuli Leppälä, 2011. "Opening up the 'Jacobs Spillovers' black box: local diversity, creativity and the processes underlying new combinations," Journal of Economic Geography, Oxford University Press, vol. 11(5), pages 843-863, September.
- Moosup Jung & Keun Lee, 2010. "Sectoral systems of innovation and productivity catch-up: determinants of the productivity gap between Korean and Japanese firms," Industrial and Corporate Change, Oxford University Press, vol. 19(4), pages 1037-1069, August.
- Kafouros, Mario I. & Buckley, Peter J., 2008. "Under what conditions do firms benefit from the research efforts of other organizations?," Research Policy, Elsevier, vol. 37(2), pages 225-239, March.
- Cheong, Kwang Soo & Choo, Kineung & Lee, Keun, 2010. "Understanding the behavior of business groups: A dynamic model and empirical analysis," Journal of Economic Behavior & Organization, Elsevier, vol. 76(2), pages 141-152, November.
- Jeffrey I. Bernstein, 1988. "Costs of Production, Intra- and Interindustry R&D Spillovers: Canadian Evidence," Canadian Journal of Economics, Canadian Economics Association, vol. 21(2), pages 324-47, May.
- Kineung Choo & Keun Lee & Keunkwan Ryu & Jungmo Yoon, 2009. "Changing Performance of Business Groups over Two Decades: Technological Capabilities and Investment Inefficiency in Korean Chaebols," Economic Development and Cultural Change, University of Chicago Press, vol. 57(2), pages 359-386, 01.
- Suzuki, Jun & Kodama, Fumio, 2004. "Technological diversity of persistent innovators in Japan: Two case studies of large Japanese firms," Research Policy, Elsevier, vol. 33(3), pages 531-549, April.
- Tarun Khanna & Krishna Palepu, 2000. "Is Group Affiliation Profitable in Emerging Markets? An Analysis of Diversified Indian Business Groups," Journal of Finance, American Finance Association, vol. 55(2), pages 867-891, 04.
- Jordaan, Jacob A., 2008. "Intra- and Inter-industry Externalities from Foreign Direct Investment in the Mexican Manufacturing Sector: New Evidence from Mexican Regions," World Development, Elsevier, vol. 36(12), pages 2838-2854, December.
- Jeffrey BERNSTEIN, 1998. "Factor Intensities, Rates of Return, and International R&D Spillovers: The Case of Canadian and U.S. Industries," Annales d'Economie et de Statistique, ENSAE, issue 49-50, pages 541-564.
- Glaeser, Edward Ludwig & Kallal, Hedi D. & Scheinkman, Jose A. & Shleifer, Andrei, 1992.
"Growth in Cities,"
3451309, Harvard University Department of Economics.
- Ghemawat, Pankaj & Khanna, Tarun, 1998. "The Nature of Diversified Business Groups: A Research Design and Two Case Studies," Journal of Industrial Economics, Wiley Blackwell, vol. 46(1), pages 35-61, March.
- Branstetter, Lee, 2000. "Vertical Keiretsu and Knowledge Spillovers in Japanese Manufacturing: An Empirical Assessment," Journal of the Japanese and International Economies, Elsevier, vol. 14(2), pages 73-104, June.
- Goto, Akira, 1982. "Business groups in a market economy," European Economic Review, Elsevier, vol. 19(1), pages 53-70.
- Tarun Khanna & Yishay Yafeh, 2007. "Business Groups in Emerging Markets: Paragons or Parasites?," Journal of Economic Literature, American Economic Association, vol. 45(2), pages 331-372, June.
- Bwalya, Samuel Mulenga, 2006. "Foreign direct investment and technology spillovers: Evidence from panel data analysis of manufacturing firms in Zambia," Journal of Development Economics, Elsevier, vol. 81(2), pages 514-526, December.
When requesting a correction, please mention this item's handle: RePEc:hit:iirwps:13-15. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Digital Resources Section, Hitotsubashi University Library)The email address of this maintainer does not seem to be valid anymore. Please ask Digital Resources Section, Hitotsubashi University Library to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.