Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits and Market Value
Adam Jaffe ()
No 1815, NBER Working Papers from National Bureau of Economic Research, Inc
This paper presents evidence that firms' patents, profits and market value are systematically related to the"technological position" of firms' research programs. Further, firms are seen to "move" in technology space in response to the pattern of contemporaneous profits at different positions. These movements tend to erode excess returns."Spillovers" of R&D are modelled by examining whether the R&D of neighboring firms in technology space has an observable impact on the firm's R&D success. Firms whose neighbors do much R&D produce more patents per dollar of their own R&D,with a positive interaction that gives high R&D firms the largest benefit from spillovers. In terms of profit and market value, however, their are both positive and negative effects of nearby firms' R&D. The net effect is positive for high R&D firms, but firms with R&D about one standard deviation below the mean are made worse off overall by the R&D of others.
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (218) Track citations by RSS feed
Published as American Economic Review, Vo. 76, no. 5, pp. 984-999, December 1986.
Downloads: (external link)
Journal Article: Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits, and Market Value (1986)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: http://EconPapers.repec.org/RePEc:nbr:nberwo:1815
Ordering information: This working paper can be ordered from
Access Statistics for this paper
More papers in NBER Working Papers from National Bureau of Economic Research, Inc
Address: National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.
Contact information at EDIRC.
Series data maintained by ().