Identifying Technology Spillovers and Product Market Rivalry

Nicholas Bloom (), Mark Schankerman and John van Reenen ()

No 4912, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: Support for many R&D and technology policies relies on empirical evidence that R&D ‘spills over’ between firms. But there are two countervailing R&D spillovers: positive effects from technology spillovers and negative effects from business stealing by product market rivals. We develop a general framework showing that technology and product market spillovers have testable implications for a range of performance indicators, and exploit these using distinct measures of a firm’s position in technology space and product market space. We show using panel data on US firms between 1981 and 2001 that both technology and product market spillovers operate, but that net social returns are several times larger than private returns. The spillover effects are also revealed when we analyze three high-tech sectors in detail - pharmaceuticals, computer hardware and telecommunication equipment. Using the model we evaluate three R&D subsidy policies and show that the typical focus of support for small and medium firms may be misplaced.

Keywords: market value; patents; R&D; spillovers (search for similar items in EconPapers)
JEL-codes: F23 O31 O32 O33 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-tid
Date: Written
View citations in EconPapers

Downloads: (external link)
http://www.cepr.org/pubs/dps/DP4912.asp (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Working Paper: Identifying Technology Spillovers and Product Market Rivalry (2005)
Working Paper: Identifying technology spillovers and product market rivalry (2005)
Working Paper: Identifying Technology Spillovers and Product Market Rivalry (2007)
Journal Article: Identifying technology spillovers and product market rivalry (2005)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:cpr:ceprdp:4912

Ordering information: This working paper can be ordered from
http://www.cepr.org/pubs/dps/DP4912.asp

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers
Address: Centre for Economic Policy Research, 53--56 Great Sutton Street, London EC1V 0DG
Series data maintained by ().