R&D Spillovers, Technological Proximity, and Productivity Growth - Evidencs from German Panel Data

Schmalenbach Business Review, Vol. 52, pp. 238-260, July 2000

Posted: 11 Jun 2002

See all articles by Dietmar Harhoff

Dietmar Harhoff

Max Planck Institute for Innovation and Competition; Ludwig-Maximilians-Universität München; Centre for Economic Policy Research (CEPR)

Abstract

This paper studies the effect of R&D spillovers on R&D spending and productivity in a sample of German manufacturing firms. Using panel estimation techniques, the results suggest that spillovers affect industries in a heterogeneous manner. In terms of R&D investment, firms in high-technology sectors appear to react positively and more strongly to spillovers than firms in other industries. Experiments with alternative spillover definitions suggest that the effect is not due to racing phenomena. Moreover, in high-technology industries spillovers have a productivity-enhancing effect in addition to encouraging R&D investment. The effect is conditioned by the firm's own R&D activity. Consistent with the hypothesis of absorptive capacity, high R&D capital stocks appear to enable firms to profit from external R&D.

Keywords: R&D, spillovers, productivity growth

JEL Classification: O30, O40, D20

Suggested Citation

Harhoff, Dietmar, R&D Spillovers, Technological Proximity, and Productivity Growth - Evidencs from German Panel Data. Schmalenbach Business Review, Vol. 52, pp. 238-260, July 2000, Available at SSRN: https://ssrn.com/abstract=310347

Dietmar Harhoff (Contact Author)

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany
+49 89 24246 550 (Phone)
+49 89 24246 599 (Fax)

HOME PAGE: http://www.ip.mpg.de

Ludwig-Maximilians-Universität München ( email )

Munich, 80539
Germany

Centre for Economic Policy Research (CEPR)

London
United Kingdom

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