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Absorptive capacity, R&D; spillovers and public policy

Abstract:

Empirical evidence strongly suggests that R&D; increases a firm's “absorptive capacity” (its ability to absorb spillovers from other firms) as well as contributing directly to profitability. We explore the theoretical implications of this. We specify a general model of the absorptive capacity process and show that costly absorption both raises the effectiveness of own R&D; and lowers the effective spillover coefficient. This weakens the case for encouraging research joint ventures, ev...

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Publication status:
Published
Peer review status:
Peer reviewed

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Institution:
University College Dublin
Department:
School of Economics
Role:
Author
More by this author
Institution:
University of Oxford
Division:
SSD
Department:
Economics
Research group:
Industrial Economics
Oxford college:
Merton College
Role:
Author
Publisher:
Elsevier Publisher's website
Journal:
International Journal of Industrial Organization Journal website
Volume:
25
Issue:
5
Pages:
1089-1108
Publication date:
2007-10-01
DOI:
ISSN:
0167-7187
Language:
English
Keywords:
Subjects:
UUID:
uuid:073e20c0-fc7c-4df5-a21e-14b89c926048
Local pid:
ora:2107
Deposit date:
2008-06-19

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