Corporate R&D Spillovers and Investment in the Innovation Network

35 Pages Posted: 13 Nov 2019

See all articles by Alex Xi He

Alex Xi He

University of Maryland - Robert H. Smith School of Business

Date Written: February 3, 2015

Abstract

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

He, Alex Xi, Corporate R&D Spillovers and Investment in the Innovation Network (February 3, 2015). Available at SSRN: https://ssrn.com/abstract=3481284 or http://dx.doi.org/10.2139/ssrn.3481284

Alex Xi He (Contact Author)

University of Maryland - Robert H. Smith School of Business ( email )

College Park, MD 20742-1815
United States

HOME PAGE: http://www.alexxihe.com/

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