R&D, International Sourcing, and the Joint Impact on Firm Performance

Esther Ann Bøler, Andreas Moxnes and Karen Helene Ulltveit-Moe

American Economic Review, 2015, vol. 105, issue 12, 3704-39

Abstract: This paper studies the impact of an R&D cost shock on R&D investments, imported inputs, and their joint impact on firm performance. We introduce imported inputs into a model of R&D and endogenous productivity, and show that R&D and international sourcing are complementary activities. Exploiting the introduction of an R&D tax credit in Norway in 2002, we find that cheaper R&D stimulated not only R&D investments but also imports of intermediates, quantitatively consistent with the model. An implication of our work is that improved access to imported inputs promotes R&D investments and, ultimately, technological change. (JEL D92, F14, G31, H25, L25, O32, O33)

JEL-codes: D92 F14 G31 H25 L25 O32 O33 (search for similar items in EconPapers)
Date: 2015
Note: DOI: 10.1257/aer.20121530
References: Add references at CitEc
Citations: View citations in EconPapers (93)

Downloads: (external link)
http://www.aeaweb.org/articles.php?doi=10.1257/aer.20121530 (application/pdf)
https://www.aeaweb.org/aer/app/10512/20121530_app.pdf (application/pdf)
https://www.aeaweb.org/aer/data/10512/20121530_data.zip (application/zip)
https://www.aeaweb.org/aer/ds/10512/20121530_ds.zip (application/zip)
Access to full text is restricted to AEA members and institutional subscribers.

Related works:
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: https://EconPapers.repec.org/RePEc:aea:aecrev:v:105:y:2015:i:12:p:3704-39

Ordering information: This journal article can be ordered from
https://www.aeaweb.org/journals/subscriptions

Access Statistics for this article

American Economic Review is currently edited by Esther Duflo

More articles in American Economic Review from American Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by Michael P. Albert ().