Market Demand, Technological Opportunity and Research Spillovers on R&D Intensity and Productivity Growth

53 Pages Posted: 9 Jun 2004 Last revised: 2 Dec 2022

See all articles by Adam B. Jaffe

Adam B. Jaffe

Brandeis University; Motu Economic and Public Policy Research; National Bureau of Economic Research (NBER)

Date Written: August 1984

Abstract

This paper uses sales and patent distribution data to establish the market and technological "positions" of firms. A notion of technological proximity of firms is developed in order to quantify potential R&D spillovers. The importance of the position variables and the potential spilover pool in explaining R&D intensity, patent productivity and TFP growth is explored.I find that both technological and market positions are signifi-cant in explaining R&D intensity, and that the technological effects are significant in explaining patent productivity. I cannot distinguish between the two effects in explaining TFP growth. Spillovers are important in all three contexts. Firms in an area where there is a high level of research by other firms do more R&D themselves, they produce more patents per R&D dollar, and their productivity grows faster, even controlling for the increased R&D and patents. These effects are present controlling for both industry and technological position effects.

Suggested Citation

Jaffe, Adam B., Market Demand, Technological Opportunity and Research Spillovers on R&D Intensity and Productivity Growth (August 1984). NBER Working Paper No. w1432, Available at SSRN: https://ssrn.com/abstract=328681

Adam B. Jaffe (Contact Author)

Brandeis University ( email )

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HOME PAGE: http://www.brandeis.edu/global/people/faculty/jaff

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National Bureau of Economic Research (NBER)

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