University R&D and Firm Productivity: Evidence from Italy

Posted: 17 Nov 2009

See all articles by Giuseppe Medda

Giuseppe Medda

University of Sassari

Claudio A. Piga

Università degli Studi di Genova - Economics

Donald S. Siegel

Arizona State University-School of Public Affairs

Date Written: 2005

Abstract

The purpose of this study is to examine the impact of joint research projects with universities on a firm's growth in total factor productivity (TFP). First, a reduced-form version of the research and development (R&D) capital stock model is estimated.This econometric model is evaluated in light of data from a 1998 survey of 2,222 manufacturing firms in Italy. Analysis of the data, whichcontain information on various types of external research, indicates that external R&D generates significantly higher returns than internal R&D. These positive returns appear to be driven by external research projects with other firms and research centers.On the other hand, investment in external collaborative research with universities does not appear to generate a direct positive return to the firm.Still, the knowledge obtainedfrom interactions with universities may ultimately lead to higher productivity growth. (SAA)

Keywords: Manufacturing industries, Firm productivity, R&D, Return on investment, University-firm relations, Cooperative research

Suggested Citation

Medda, Giuseppe and Piga, Claudio A. and Siegel, Donald S., University R&D and Firm Productivity: Evidence from Italy (2005). University of Illinois at Urbana-Champaign's Academy for Entrepreneurial Leadership Historical Research Reference in Entrepreneurship, Available at SSRN: https://ssrn.com/abstract=1506833

Giuseppe Medda (Contact Author)

University of Sassari ( email )

via Muroni 25
Sassari, Sassari 07100
Italy

Claudio A. Piga

Università degli Studi di Genova - Economics ( email )

Via Vivaldi, 5 - 16126 Genov
Genoa
Italy

HOME PAGE: http://https://sites.google.com/view/claudiopiga/home?authuser=0

Donald S. Siegel

Arizona State University-School of Public Affairs ( email )

411 North Central
Phoenix, AZ 85004
United States
6024961101 (Phone)

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