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Assessing the Returns to Collaborative Research: Firm-Level Evidence from Italy

Giuseppe Medda (), Claudio Piga () and Donald Siegel ()

Rensselaer Working Papers in Economics from Rensselaer Polytechnic Institute, Department of Economics

Abstract: We use firm-level data from Italian manufacturing firms to assess the relationship between various types of R&D and total factor productivity growth, including collaborative research with other firms and universities. A novel twist to our empirical analysis is that we estimate a treatment effects model, which enables us to treat the decision to conduct R&D as endogenous. We find strong evidence of positive returns to collaborative research with companies, while collaborative research with universities does not appear to enhance productivity. This result implies that firms may conduct R&D with universities when appropriability conditions are weak and the outcomes of such research projects do not yield direct strategic benefits.

New Economics Papers: this item is included in nep-ino
Date: 2004-06
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