Contributions and Channels of Interindustry R&D Spillovers: An Estimation for Japanese High-tech Industries

Hiroyuki Odagiri and Shin-ya Kinukawa

Economic Systems Research, 1997, vol. 9, issue 1, 127-142

Abstract: This paper estimates the contributions of R&D spillovers to four high-tech industries in Japan—general machinery, electrical machinery, transportation machinery and chemicals—by estimating the trans-log cost and share functions that include the R&D stock variables of own and spillover-source industries. The candidates for spillover- source industries are selected on the basis of large R&D flow or R&D proximity. The R&D flow measures the spillover embodied in purchased intermediate goods using input-output coefficients. The R&D proximity measures the extent of similarity between a pair of industries of the distribution of R&D expenditures across research fields, and is expected to show the likelihood of spillover at the R&D stage. The results suggest that electrical machinery benefited from R&D in the chemical industry, through the purchase of intermediate goods, whereas general machinery and transportation machinery benefited from R&D in the metal products industry, through R&D proximity. There was no evidence of the chemical industry benefiting from R&D spillovers. These results clearly imply that the contributions and the channels of R&D spillovers are diverse, casting doubt on earlier studies that used weighted sums of R&D expenditures (or their stocks) of other industries as aggregate spillover variables.

Keywords: R&D spillovers; R&D proximity; cost function; Japan (search for similar items in EconPapers)
Date: 1997
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Citations: View citations in EconPapers (5)

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DOI: 10.1080/09535319700000008

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