R&D Strategy, Metropolitan Externalities and Productivity: Evidence from Sweden

Hans L��f and Börje Johansson
Authors registered in the RePEc Author Service: Hans Lööf ()

Industry and Innovation, 2014, vol. 21, issue 2, 141-154

Abstract: This paper studies the influence of metropolitan externalities on productivity for different types of long-run R&D engagement based on information from the Community Innovation Survey. We apply a dynamic general method of moments model to a panel of manufacturing and service firms with different locations in Sweden, classified as a metropolitan region, the largest metropolitan region, a metropolitan city, the largest metropolitan city and a nonmetropolitan area. This analysis generates three distinct results. First, the productivity premium associated with persistent R&D is close to 8 per cent in nonmetro locations and about 14 per cent in the largest city. Second, a firm without any R&D engagement does not benefit at all from the external milieu in metro areas. Third, no productivity premium is associated with occasional R&D effort regardless of the firm's location.

Date: 2014
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Citations: View citations in EconPapers (8)

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DOI: 10.1080/13662716.2014.896600

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