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

Aldieri, Luigi and Aprile, Maria Carmela and Vinci, Concetto Paolo (2015): R&D Spillovers Effects on strategic behaviour of Large International Firms.

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

• Item Type: MPRA Paper
• Language: English
• Keywords: Spatial models; Innovation; R&D spillovers
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C31 - Cross-Sectional Models ; Spatial Models ; Treatment Effect Models ; Quantile Regressions ; Social Interaction Models; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; O - Economic Development, Innovation, Technological Change, and Growth > O3 - Innovation ; Research and Development ; Technological Change ; Intellectual Property Rights > O31 - Innovation and Invention: Processes and Incentives; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R1 - General Regional Economics > R15 - Econometric and Input-Output Models ; Other Models

References

Acemoglu D. (1996). A Microfoundation for Social Increasing Returns in Human Capital Accumulation. Quarterly Journal of Economics, 111(3), 779-804;

Aldieri L. (2011). Technological and geographical proximity effects on knowledge spillovers: evidence from the US patent citations. Economics of Innovation and New Technology, 20 (6), 597-607;

Aldieri L. and M. Cincera (2009). Geographic and technological R&D spillovers within the triad: micro evidence from US patents. The Journal of Technology Transfer, 34 (2), 196-211;

Aldieri L. and Vinci C. P. (2014). Knowledge Spillovers Effects: A Patent Inventors Approach. Available at SSRN: http://ssrn.com/abstract=2474150

Aldieri L. and Vinci C. P. (2015). Industry Spillovers Effects on Productivity of Large International Firms. MPRA Working Paper 62429;

Aghion P. and Howitt P. (1992). A model of growth through creative destruction. Econometrica, 60, 323-351;

Arellano M. and Bover. O. (1995). Another look at the instrumental-variable estimation of error-components models. Journal of Econometrics, 68, 29-52;

Beath J., Katsoulakos Y. and D. Ulph (1995). Game-theoretic approaches to the modelling og technological change, in Stoneman P. (ed.) Handbook of the Economics of Innovation and Technological Change, Blackwell, Oxford, 132-181;

Benner M., Waldfogel (2008). Close to you? Bias and precision in patent-bassed measures of technological proximity, Research Policy, 37, 1556-1567;

Bloom N., Shankerman M. and J. Van Reenen (2013). Identifying technology spillovers and product market rivalry. Econometrica, 81, 1347-1393;

Blundell R. W. and Bond S. R. (1998). Initial conditions and moment restrictions in dynamic panel data models. Journal of Econometrics, 87, 115-143;

Capron H. (1994). Technological competition and strategy of firms inside the triad, in Khalil T. and Bayraktar B., (eds.), Management of Technology IV, The Creation Wealth, Industrial Engineering and Management Press, Nordcross, 467-477;

Capron H. and M. Cincera (1998). Exploring the spillover impact on productivity of Worldwide manufacturing firms, Annales d’ économie et de statistiques, 49/50, 566-587;

Capron H. and Cincera M. (2001). Technological competition, economic performance and strategic behavior of international firms. Brussels Economic Review, vo. 169(169), 33-62;

Cincera M. (1998). Economic and technological performances of international firms. PhD thesis, Université Libre de Bruxelles;

Dasgupta P. and J Stiglitz (1980). Uncertainty, industrial structure and the speed of R&D, Bell Journal, 11, 1-28 ;

Drukker D. M., Prucha I. R. and Raciborski R. (2013). A command for estimating spatial-autoregressive models with spatial-autoregressive disturbances and additional endogenous variables. The Stata Journal, 13(2), 287-301;

European Commission (2011) "The 2011 EU Industrial R&D Investment Scoreboard" JRC Scientific and Technical Research series. http://iri.jrc.ec.europa.eu/scoreboard.html;

Gilbert R.J. and D.M.G. Newbery (1982). Preemptive patenting and the persistence of monopoly, American Economic Review, 72, 514-526;

Griliches Z. (1979). Issues in assessing the contribution of R&D to productivity growth. Bell Journal of Economics, 10, 92–116;

Grossman G.M. and C. Shapiro (1987). Optimal Dynamic R&D programs, Rand Journal of Economics, 17, 581-593;

Grossman G. and Helpman E. (1991). Innovation and growth in the global economy. Cambridge, MA: MIT Press;

Jaffe A. B. (1986). Technological opportunity and spillovers of R&D: Evidence from firms’ patents, profits and market value. American Economic Review, 76, 984–1001;

Jaffe A.B. (1988). R&D intensity and productivity growth. Review of Economics and Statistics, 70, 431-437;

Jaffe A.B. (1989). Characterizing the ‘Technological Position’ of firms, with application to quantifying technological opportunity and research spillovers, Research Policy, 18, 87-97;

Jaffe A.B., Trajtenberg M. and R. Henderson (1993). Geographical localization of knowledge spillovers as evidenced by patent citations. Quarterly Journal of Economics, 108 (3), 577-598;

Judd K.L. (1985). Closed-loop equilibrium in a multi-stage innovation race, discussion paper no. 647, Center for Mathematical Studies in Economics and Management Science, Northwestern University;

Harris C. and J. Vickers (1985). Perfect equilibrium in a model of a race, Review of Economic Studies, 52, 193-209;

Lee T. and L.L. Wilde (1980). Market structure and innovation: A reformulation, Quarterly Journal of Economics, 94, 429-436;

Loury G.C. (1979). Market structure and innovation, Quarterly Journal of Economics, 93, 395-410;

Maraut, S., H. Dernis, C. Webb, V. Spiezia, and D. Guellec. 2008. “The OECD REGPAT Database: A Presentation.” STI Working Paper 2008/2, OECD, Paris;

OECD, REGPAT database (accessed January 1, 2012). ftp://prese:[e-mail]/ REGPAT_201301/;

Orlando Michael J. (2004). Measuring spillovers from industrial R&D: on the importance of geographic and technological proximity, RAND Journal of Economics, 35, 777-786;

Reinganum J.F. (1981). Dynamic games of innovation, Journal of Economic Theory, 25, 21-41;

Reinganum J.F. (1982). A dynamic game of R and D: Patent protection and competitive behavior, Econometrica, 50, 671-688;

Reinganum J.F. (1983). Uncertain innovation and the persistence of monopoly, American Economic review, 73, 741-748;

Reinganum J.F. (1985). Innovation and industry evolution, Quarterly Journal of Economics, 81-99;

Reinganum Jennifer F. (1989). The timing of innovation: research, development, and diffusion, in Shmalensee R. and R.D. Willig (ed.) Handbook of Industrial Organization, Volume I, Elsevier Science Publisher B.V.;

Sherer F.M. (1967). Market structure and the employment of scientists and engineers, American Economic Review, 57(2), 524-531;

Sherer F.M. (1992). International High- Technology Competition, Harvard University Press, Cambridge;

Sherer F.M. and K. Huh (1992). R&d reactions to high-technology import competition, Review of Economics and Statistics, 74(2), 202-212;

Spence M. (1984). Cost reduction, competition and industry performance. Econometrica, 52, 101-121;

Vickers J. (1985). The evolution of market structure when there is a sequence of innovations, The Journal of Industrial Economics, 35(1), 1-12.