Identifying Technology Spillovers and Product Market Rivalry

Nicholas Bloom, Mark Schankerman and John van Reenen

No 13060, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Support for R&D subsidies relies on empirical evidence that R&D "spills over" between firms. But firm performance is affected by two countervailing R&D spillovers: positive effects from technology spillovers and negative business stealing effects from R&D 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 then exploit these using distinct measures of a firm's position in technology space and product market space. Using panel data on U.S. firms between 1980 and 2001 we show that both technology and product market spillovers operate, but technology spillovers quantitatively dominate. The spillover effects are also present when we analyze three high tech sectors in finer detail. Using the model we evaluate the net spillovers from three alternative R&D subsidy policies.

JEL-codes: F23 L1 O31 O32 O33 (search for similar items in EconPapers)
Date: 2007-04
New Economics Papers: this item is included in nep-bec, nep-com, nep-ipr, nep-pr~ and nep-tid
Note: IO PR
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Citations: View citations in EconPapers (51)

Published as Nick Bloom & Mark Schankerman & John Van Reenen, 2005. "Identifying technology spillovers and product market rivalry," Proceedings, Federal Reserve Bank of San Francisco.
Published as Nicholas Bloom & Mark Schankerman & John Van Reenen, 2013. "Identifying Technology Spillovers and Product Market Rivalry," Econometrica, Econometric Society, vol. 81(4), pages 1347-1393, 07.

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Related works:
Journal Article: Identifying Technology Spillovers and Product Market Rivalry (2013)
Working Paper: Identifying technology spillovers and product market rivalry (2013)
Working Paper: Identifying technology spillovers and product market rivalry (2007)
Journal Article: Identifying technology spillovers and product market rivalry (2005)
Working Paper: Identifying Technology Spillovers and Product Market Rivalry (2005)
Working Paper: Identifying technology spillovers and product market rivalry (2005)
Working Paper: Identifying Technology Spillovers and Product Market Rivalry (2005)
Working Paper: Identifying technology spillovers and product market rivalry (2005)
Working Paper: Identifying technology spillovers and product market rivalry (2005)
Working Paper: Identifying technology spillovers and product market rivalry (2005)
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