Bounding the Effects of R&D: An Investigation Using Matched Establishment-Firm Data
Studies of firm-level data have shown that a firm's R&D and the R&D of other firms increase conventional factor productivity. We investigate these phenomena further by examining the relationship between plant-level productivity and firm-level R&D. We find that (1) the productivity-enhancing effects of parent firm R&D are diminished by geographic distance from the research lab and `technological' distance between the product-field focus of the R&D and the plants; (2) productivity appears to depend on the intensity of parent firm R&D (R&D per plant), not on the total amount; and (3) spillovers of research effects from technologically related firms are significant but also depend on R&D intensity rather than total industry R&D. These results suggest that, despite the externalities created by spillovers of R&D, the `dilution' of R&D across multiple target plants reduces its potency sufficiently that spillovers may not be a source of industry-wide or economy-wide increasing returns.
|Date of creation:||Apr 1996|
|Date of revision:|
|Publication status:||published as in the Rand Journal of Economics vol.27,no.4, (winter,1996), pp.700-721.|
|Contact details of provider:|| Postal: |
Web page: http://www.nber.org
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.:
- repec:cup:cbooks:9780521818551 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:5544. See general information about how to correct material in RePEc.
If references are entirely missing, you can add them using this form.