University R&D and Firm Productivity: Evidence from Italy
Posted: 17 Nov 2009
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
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