R&D Strategy, Metropolitan Externalities and Productivity

Hans Lööf () and Börje Johansson

No 313, Working Paper Series in Economics and Institutions of Innovation from Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies

Abstract: This paper studies the influence of metropolitan externalities on productivity for different types of long run R&D engagement based on information from the Community Innovation Survey. We apply a dynamic general method of moments model to a panel of manufacturing and service firms with different locations in Sweden, classified as a metropolitan region, the largest metropolitan region, a metropolitan city, the largest metropolitan city and a non-metropolitan area. This analysis generates three distinct results. First, the productivity premium associated with persistent R&D is close to 8 percent in non-metro locations and about 14 percent in the largest city. Second, a firm without any R&D engagement does not benefit at all from the external milieu in metro areas. Third, no productivity premium is associated with occasional R&D effort regardless of the firm’s location.

Keywords: R&D; innovation strategy; productivity; metropolitan; externalities (search for similar items in EconPapers)
JEL-codes: C23 O31 O32 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2013-06-05
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino, nep-knm, nep-sbm and nep-ure
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:hhs:cesisp:0313

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