IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/63402.html
   My bibliography  Save this paper

R&D Spillovers Effects on strategic behaviour of Large International Firms

Author

Listed:
  • Aldieri, Luigi
  • Aprile, Maria Carmela
  • Vinci, Concetto Paolo

Abstract

This study contributes to existing literature on firms’ innovative activity examining the relationship between the R&D rivalry and spillovers at the firm level. In particular, we present an empirical analysis in United States, Japan and Europe based upon a new dataset composed of 879 worldwide R&D-intensive firms. In order to identify the technological proximity, we use the Jaffe industry weight matrix, based on the construction of technological vectors for each firm, where its patents are distributed across technology classes, in such a way that we compute knowledge spillovers. Opportune econometric techniques, which deal with both firm’s unobserved heterogeneity and weak exogeneity of the explanatory variables, are implemented. In order to test the robustness of our results, we introduce also the combined spatial-autoregressive model with autoregressive disturbances and additional endogenous variables. The empirical results are differentiated across countries, and suggest that the spatial effects are statistically significant

Suggested Citation

  • Aldieri, Luigi & Aprile, Maria Carmela & Vinci, Concetto Paolo, 2015. "R&D Spillovers Effects on strategic behaviour of Large International Firms," MPRA Paper 63402, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:63402
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/63402/1/MPRA_paper_63402.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Luigi Aldieri & Michele Cincera, 2009. "Geographic and technological R&D spillovers within the triad: micro evidence from US patents," The Journal of Technology Transfer, Springer, vol. 34(2), pages 196-211, April.
    2. Kenneth L. Judd, 2003. "Closed-loop equilibrium in a multi-stage innovation race," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 21(2), pages 673-695, March.
    3. Reinganum, Jennifer F., 1981. "Dynamic games of innovation," Journal of Economic Theory, Elsevier, vol. 25(1), pages 21-41, August.
    4. Henri Capron & Michele Cincera, 1998. "Exploring the Spillover Impact on Productivity of World-Wide Manufacturing Firms," Annals of Economics and Statistics, GENES, issue 49-50, pages 565-587.
    5. Adam B. Jaffe & Manuel Trajtenberg & Rebecca Henderson, 1993. "Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 108(3), pages 577-598.
    6. Reinganum, Jennifer F, 1982. "A Dynamic Game of R and D: Patent Protection and Competitive Behavior," Econometrica, Econometric Society, vol. 50(3), pages 671-688, May.
    7. Nicholas Bloom & Mark Schankerman & John Van Reenen, 2013. "Identifying Technology Spillovers and Product Market Rivalry," Econometrica, Econometric Society, vol. 81(4), pages 1347-1393, July.
    8. Aghion, Philippe & Howitt, Peter, 1992. "A Model of Growth through Creative Destruction," Econometrica, Econometric Society, vol. 60(2), pages 323-351, March.
    9. Michele Cincera & Henri Capron, 2000. "Technological Performance," ULB Institutional Repository 2013/147109, ULB -- Universite Libre de Bruxelles.
    10. Jaffe, Adam B., 1989. "Characterizing the "technological position" of firms, with application to quantifying technological opportunity and research spillovers," Research Policy, Elsevier, vol. 18(2), pages 87-97, April.
    11. Henri Capron & Michele Cincera, 2001. "Technological competition, economic performance and strategic behaviour of international firms," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 169(169), pages 33-62.
    12. Reinganum, Jennifer F., 1989. "The timing of innovation: Research, development, and diffusion," Handbook of Industrial Organization, in: R. Schmalensee & R. Willig (ed.), Handbook of Industrial Organization, edition 1, volume 1, chapter 14, pages 849-908, Elsevier.
    13. David M. Drukker & Ingmar Prucha & Rafal Raciborski, 2013. "A command for estimating spatial-autoregressive models with spatial-autoregressive disturbances and additional endogenous variables," Stata Journal, StataCorp LP, vol. 13(2), pages 287-301, June.
    14. Jennifer F. Reinganum, 1985. "Innovation and Industry Evolution," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(1), pages 81-99.
    15. Benner, Mary & Waldfogel, Joel, 2008. "Close to you? Bias and precision in patent-based measures of technological proximity," Research Policy, Elsevier, vol. 37(9), pages 1556-1567, October.
    16. 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.
    17. Partha Dasgupta & Joseph Stiglitz, 1980. "Uncertainty, Industrial Structure, and the Speed of R&D," Bell Journal of Economics, The RAND Corporation, vol. 11(1), pages 1-28, Spring.
    18. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    19. Luigi Aldieri, 2011. "Technological and geographical proximity effects on knowledge spillovers: evidence from the US patent citations," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(6), pages 597-607, January.
    20. Gilbert, Richard J & Newbery, David M G, 1982. "Preemptive Patenting and the Persistence of Monopoly," American Economic Review, American Economic Association, vol. 72(3), pages 514-526, June.
    21. Scherer, F M & Huh, Keun, 1992. "R&D Reactions to High-Technology Import Competition," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 202-212, May.
    22. Luigi Aldieri & Concetto Paolo Vinci, 2016. "Knowledge Spillover Effects: A Patent Inventor Approach," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 58(1), pages 1-16, March.
    23. Spence, Michael, 1984. "Cost Reduction, Competition, and Industry Performance," Econometrica, Econometric Society, vol. 52(1), pages 101-121, January.
    24. Glenn C. Loury, 1979. "Market Structure and Innovation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 93(3), pages 395-410.
    25. Reinganum, Jennifer F, 1983. "Uncertain Innovation and the Persistence of Monopoly," American Economic Review, American Economic Association, vol. 73(4), pages 741-748, September.
    26. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    27. Daron Acemoglu, 1996. "A Microfoundation for Social Increasing Returns in Human Capital Accumulation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 111(3), pages 779-804.
    28. repec:adr:anecst:y:1998:i:49-50:p:22 is not listed on IDEAS
    29. Tom Lee & Louis L. Wilde, 1980. "Market Structure and Innovation: A Reformulation," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 94(2), pages 429-436.
    30. Christopher Harris & John Vickers, 1985. "Perfect Equilibrium in a Model of a Race," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 52(2), pages 193-209.
    31. Michele Cincera, 1998. "Economic and technological performances of international firms," ULB Institutional Repository 2013/212081, ULB -- Universite Libre de Bruxelles.
    32. Michael J. Orlando, 2004. "Measuring Spillovers from Industrial R&D: On the Importance of Geographic and Technological Proximity," RAND Journal of Economics, The RAND Corporation, vol. 35(4), pages 777-786, Winter.
    33. Stéphane Maraut & Hélène Dernis & Colin Webb & Vincenzo Spiezia & Dominique Guellec, 2008. "The OECD REGPAT Database: A Presentation," OECD Science, Technology and Industry Working Papers 2008/2, OECD Publishing.
    34. Aldieri, Luigi & Vinci, Concetto Paolo, 2015. "Industry Spillovers Effects on Productivity of Large International Firms," MPRA Paper 62429, University Library of Munich, Germany.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aldieri, Luigi & Vinci, Concetto Paolo, 2015. "Industry Spillovers Effects on Productivity of Large International Firms," MPRA Paper 62429, University Library of Munich, Germany.
    2. Aldieri, Luigi & Sena, Vania & Vinci, Concetto Paolo, 2018. "Domestic R&D spillovers and absorptive capacity: Some evidence for US, Europe and Japan," International Journal of Production Economics, Elsevier, vol. 198(C), pages 38-49.
    3. Luigi Aldieri & Michele Cincera, 2009. "Geographic and technological R&D spillovers within the triad: micro evidence from US patents," The Journal of Technology Transfer, Springer, vol. 34(2), pages 196-211, April.
    4. Leibowicz, Benjamin D., 2018. "Welfare improvement windows for innovation policy," Research Policy, Elsevier, vol. 47(2), pages 390-398.
    5. Sergey Lychagin & Joris Pinkse & Margaret E. Slade & John Van Reenen, 2016. "Spillovers in Space: Does Geography Matter?," Journal of Industrial Economics, Wiley Blackwell, vol. 64(2), pages 295-335, June.
    6. Czarnitzki, Dirk & Kraft, Kornelius, 2004. "An empirical test of the asymmetric models on innovative activity: who invests more into R&D, the incumbent or the challenger?," Journal of Economic Behavior & Organization, Elsevier, vol. 54(2), pages 153-173, June.
    7. Isabelle Brocas, 2003. "Les enjeux de la réglementation de la recherche et développement," Revue d'économie politique, Dalloz, vol. 113(1), pages 125-148.
    8. Richard Gilbert, 2006. "Looking for Mr. Schumpeter: Where Are We in the Competition-Innovation Debate?," NBER Chapters, in: Innovation Policy and the Economy, Volume 6, pages 159-215, National Bureau of Economic Research, Inc.
    9. Ronald Goettler & Brett Gordon, 2014. "Competition and product innovation in dynamic oligopoly," Quantitative Marketing and Economics (QME), Springer, vol. 12(1), pages 1-42, March.
    10. Levin, Mark (Левин, Марк) & Matrosova, Kseniya (Матросова, Ксения), 2017. "Development and Analysis of Economic Models of Innovation Incentives [Разработка И Исследование Экономических Моделей Стимулирования Инновационных Процессов]," Working Papers 061713, Russian Presidential Academy of National Economy and Public Administration.
    11. Nguyen, Thang, 2004. "Technological Progress in Races for Product Supremacy," MPRA Paper 235, University Library of Munich, Germany, revised 18 Jul 2006.
    12. Mehrez, Abraham & Justman, Moshe, 2001. "On the efficiency of the parallel path R&D approach: a stochastic game analysis," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 57(1), pages 19-28.
    13. Massimiliano Agovino & Luigi Aldieri & Antonio Garofalo & Concetto Paolo Vinci, 2017. "Quality and quantity in the innovation process of firms: a statistical approach," Quality & Quantity: International Journal of Methodology, Springer, vol. 51(4), pages 1579-1591, July.
    14. Luigi Aldieri & Concetto Paolo Vinci, 2017. "R&D Spillovers And Productivity In Italian Manufacturing Firms," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 21(04), pages 1-16, May.
    15. De Bondt, Raymond, 1997. "Spillovers and innovative activities," International Journal of Industrial Organization, Elsevier, vol. 15(1), pages 1-28, February.
    16. Michele Cincera, 2005. "Firms' productivity growth and R&D spillovers: An analysis of alternative technological proximity measures," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 14(8), pages 657-682.
    17. Matros, Alexander & Smirnov, Vladimir, 2016. "Duplicative search," Games and Economic Behavior, Elsevier, vol. 99(C), pages 1-22.
    18. Capolupo, Rosa, 2009. "The New Growth Theories and Their Empirics after Twenty Years," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 3, pages 1-72.
    19. Saul Lach & Rafael Rob, 1996. "R&D, Investment, and Industry Dynamics," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 5(2), pages 217-249, June.
    20. Luigi Aldieri & Concetto Paolo Vinci, 2017. "Quantile Regression for Panel Data: An Empirical Approach for Knowledge Spillovers Endogeneity," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 9(7), pages 106-113, July.

    More about this item

    Keywords

    Spatial models; Innovation; R&D spillovers;
    All these keywords.

    JEL classification:

    • 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
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:63402. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.