Corporate R&D Spillovers and Investment in the Innovation Network
35 Pages Posted: 13 Nov 2019
Date Written: February 3, 2015
In this paper, I build a measure of technological distance between firms using the citation- based innovation network, which incorporates knowledge spillovers from upstream techno- logical fields to downstream technological fields. I then use this measure to estimate the impact of technology spillovers using panel data on U.S. firms. I find that spillovers from firms innovating in upstream fields are quantitatively as important as spillovers from firms innovating in same fields. Consistent with the idea that firms innovate more when there is more past upstream innovation to build on, firms’ R&D investments respond positively to R&D investments of firms in upstream fields, but not to R&D investments of firms in downstream fields or in the same fields. Smaller firms on average operate in more upstream technological fields and generate more spillovers and higher social returns, which is contrary to the findings of previous research.
Keywords: Spillovers, R&D, network
Suggested Citation: Suggested Citation