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Japanese Research Consortia: A Microeconometric Analysis of Industrial Policy

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  • Lee Branstetter
  • Mariko Sakakibara

Abstract

The existence of strong spillover' effects of private R&D increases the potential social contribution of R&D but may depress the private incentives to undertake it. R&D consortia offer a potentially effective means of internalizing this externality, and a number of prominent economists have argued for public support of such consortia (e.g., Romer, 1993). Governments in Europe and North America have adopted policies to promote the formation of such consortia, motivated less by economic theory than by the perception that the Japanese government has used such policies to great effect (Tyson, 1992). Despite the existence of a large theoretical literature analyzing the potential benefits and costs of R&D consortia, there has been little corresponding empirical work on their efficacy. In this paper, we undertake the first large-sample econometric study of Japanese government-sponsored research consortia which uses firm-level data on research inputs and outputs to measure the impact of participation on the ex-post research productivity of the firm. We are able to find evidence that frequent participation in these consortia has a positive impact on research expenditure and research productivity. These results hold after controlling for the potential endogeneity of the intensity of participation in consortia to participating firms' research productivity. Furthermore, we find evidence that part of this impact arises from the increased knowledge spillovers that take place within these consortia. Not only are

Suggested Citation

  • Lee Branstetter & Mariko Sakakibara, 1997. "Japanese Research Consortia: A Microeconometric Analysis of Industrial Policy," NBER Working Papers 6066, National Bureau of Economic Research, Inc.
  • Handle: RePEc:nbr:nberwo:6066 Note: PR
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    References listed on IDEAS

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    1. Rebecca Henderson & Iain Cockburn, 1996. "Scale, Scope, and Spillovers: The Determinants of Research Productivity in Drug Discovery," RAND Journal of Economics, The RAND Corporation, vol. 27(1), pages 32-59, Spring.
    2. Sakakibara, Mariko, 1997. "Evaluating government-sponsored R&D consortia in Japan: who benefits and how?," Research Policy, Elsevier, vol. 26(4-5), pages 447-473, December.
    3. 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.
    4. Barbara J. Spencer & James A. Brander, 1983. "International R & D Rivalry and Industrial Strategy," Review of Economic Studies, Oxford University Press, vol. 50(4), pages 707-722.
    5. Griliches, Zvi & Hausman, Jerry A., 1986. "Errors in variables in panel data," Journal of Econometrics, Elsevier, vol. 31(1), pages 93-118, February.
    6. Irwin, Douglas A. & Klenow, Peter J., 1996. "High-tech R&D subsidies Estimating the effects of Sematech," Journal of International Economics, Elsevier, vol. 40(3-4), pages 323-344, May.
    7. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    8. Montalvo, Jose G. & Yafeh, Yishay, 1994. "A microeconometric analysis of technology transfer : The case of licensing agreements of Japanese firms," International Journal of Industrial Organization, Elsevier, vol. 12(2), pages 227-244, June.
    9. Cockburn, Iain & Henderson, Rebecca, 1994. "Racing to Invest? The Dynamics of Competition in Ethical Drug Discovery," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 3(3), pages 481-519, Fall.
    10. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-121, January.
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    Citations

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    Cited by:

    1. Sakakibara, Mariko, 1997. "Evaluating government-sponsored R&D consortia in Japan: who benefits and how?," Research Policy, Elsevier, vol. 26(4-5), pages 447-473, December.
    2. Paulo Santos & Aurora A.C. Teixeira & Ana Brochado, 2006. "The ‘de-territorialisation of closeness’ - a typology of international successful R&D projects involving cultural and geographic proximity," FEP Working Papers 222, Universidade do Porto, Faculdade de Economia do Porto.
    3. Gamal Atallah, 2003. "Information sharing and the stability of cooperation in research joint ventures," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(6), pages 531-554.
    4. Karbowski, Adam, 2015. "Problemy dzielenia się wiedzą w poziomej współpracy badawczo-rozwojowej
      [Problems of knowledge sharing in horizontal R&D cooperation]
      ," MPRA Paper 69602, University Library of Munich, Germany.
    5. Stolpe, Michael, 2002. "Determinants of knowledge diffusion as evidenced in patent data: the case of liquid crystal display technology," Research Policy, Elsevier, vol. 31(7), pages 1181-1198, September.
    6. repec:spr:scient:v:90:y:2012:i:1:d:10.1007_s11192-011-0501-z is not listed on IDEAS
    7. Zucker, Lynne G & Darby, Michael R, 2001. "Capturing Technological Opportunity via Japan's Star Scientists: Evidence from Japanese Firms' Biotech Patents and Products," The Journal of Technology Transfer, Springer, vol. 26(1-2), pages 37-58, January.
    8. Stolpe, Michael, 2001. "Mobility of research workers and knowledge diffusion as evidenced in patent data: the case of liquid crystal display technology," Kiel Working Papers 1038, Kiel Institute for the World Economy (IfW).

    More about this item

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • L5 - Industrial Organization - - Regulation and Industrial Policy

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