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Identifying technology spillovers and product market rivalry

Nicholas Bloom (), Mark Schankerman and John van Reenen ()

STICERD - Economics of Industry Papers from Suntory and Toyota International Centres for Economics and Related Disciplines, LSE

Abstract: Support for many R&D and technology policies relies on empirical evidence that R&D "spills over" between firms. But there are two countervailing R&D spillovers: positive effects from technology spillovers and negative effects from business stealing by product market rivals. We develop a general framework showing that technology and product market spillovers have testable implications for a range of performance indicators, and exploits these using distinct measures of a firm's position in technology space and product market space. We show using panel data on U.S. firms between 1981 and 2001 that both technology and product market spillovers operate, but that net social returns are several times larger than private returns. The spillover effects are also revealed when we analyze three hightech sectors in detail - pharmaceuticals, computer hardware andtelecommunication equipment. Using the model we evaluate three R&Dsubsidy policies and show that the typical focus of support for small and medium firms may be misplaced.

Keywords: Spillovers; R&D; market value; patents. (search for similar items in EconPapers)
JEL-codes: F23 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-bec, nep-com, nep-ino and nep-tid
Date: 2005-01
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Related works:
Journal Article: Identifying Technology Spillovers and Product Market Rivalry (2013) Downloads
Working Paper: Identifying technology spillovers and product market rivalry (2013) Downloads
Working Paper: Identifying technology spillovers and product market rivalry (2007) Downloads
Working Paper: Identifying Technology Spillovers and Product Market Rivalry (2007) Downloads
Journal Article: Identifying technology spillovers and product market rivalry (2005) Downloads
Working Paper: Identifying Technology Spillovers and Product Market Rivalry (2005) Downloads
Working Paper: Identifying Technology Spillovers and Product Market Rivalry (2005) Downloads
Working Paper: Identifying technology spillovers and product market rivalry (2005) Downloads
Working Paper: Identifying technology spillovers and product market rivalry (2005) Downloads
Working Paper: Identifying technology spillovers and product market rivalry (2005) Downloads
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