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Technological Spillovers and Productivity in Italian Manufacturing Firms

Author

Listed:
  • Giuseppe Medda

    (DEIR, University of Sassari, Italy)

  • Claudio A. Piga

    (Dept of Economics, Loughborough University, UK)

Abstract

We study whether a firmÂ’s total factor productivity dynamics is positively influenced by its own R&D activity and by the technological spillovers generated at the intra- and inter-sectorial level. Our approach corrects simultaneously for the endogeneity and the selectivity biases introduced by the use of a firm's own R&D as a regressor. A firm's involvement in R&D activities accounts for significant productivity gains. Firms also benefit from spillovers originating from their own industries, as well as from innovative upstream sectors.

Suggested Citation

  • Giuseppe Medda & Claudio A. Piga, 2007. "Technological Spillovers and Productivity in Italian Manufacturing Firms," Working Paper series 08_07, Rimini Centre for Economic Analysis.
  • Handle: RePEc:rim:rimwps:08_07
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    More about this item

    Keywords

    R&D; TFP; selectivity; treatment effect;
    All these keywords.

    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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