Economics at your fingertips  

Patent propensity, R&D and market competition: Dynamic spillovers of innovation leaders and followers

Szabolcs Blazsek () and Alvaro Escribano ()

Journal of Econometrics, 2016, vol. 191, issue 1, 145-163

Abstract: In this article, dynamic interactions among stock return, Research and Development (R&D) investment, patent applications and patent propensity of firms are studied. Patent innovation leader and follower firms are identified with respect to their quality-adjusted knowledge stock. Significant and positive dynamic spillover effects are obtained in a panel vector autoregressive model. We find positive dynamic spillover effects from patent innovation leader to followers. We show that an increasing degree of competition enhances innovation and patent applications, which helps firms appropriating part of the benefits of their R&D investments.

Keywords: Patent propensity; Competition; Innovation leaders; Panel vector autoregression; Simulated maximum likelihood (search for similar items in EconPapers)
JEL-codes: C15 C31 C32 C33 C41 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

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:

Access Statistics for this article

Journal of Econometrics is currently edited by T. Amemiya, A. R. Gallant, J. F. Geweke, C. Hsiao and P. M. Robinson

More articles in Journal of Econometrics from Elsevier
Series data maintained by Dana Niculescu ().

Page updated 2017-11-07
Handle: RePEc:eee:econom:v:191:y:2016:i:1:p:145-163