A Spatial Analysis of R&D: the Role of Industry Proximity

Oliviero Carboni

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: This paper employs individual firm data in order to check the existence of industry-spatial effects alongside other microeconomic determinants of R&D investment. Spatial proximity is defined by a measure of firms' industry distance based on trade intensity between sectors. The spatial model specified here refers to the combined spatial autoregressive model with autoregressive disturbances (SARAR). In modelling the outcome for each location as dependent on a weighted average of the outcomes of other locations, outcomes are determined simultaneously. The results of the spatial two stage least square estimation suggest that in their R&D decision firms benefit from spillovers originating from neighbouring industries.

Keywords: spatial weights; spatial dependence; spatial models; r&d (search for similar items in EconPapers)
JEL-codes: C31 O10 O31 R11 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-com, nep-cse, nep-geo, nep-ino, nep-sbm and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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https://crenos.unica.it/crenos/sites/default/files/WP12-04.pdf (application/pdf)

Related works:
Journal Article: A spatial analysis of R&D: the role of industry proximity (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:cns:cnscwp:201204

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