A Spatial Analysis of the R&D‐Productivity Nexus at Firm Level

The aim of this paper is to evaluate the effect of research and development (R&D) on productivity by taking into account productivity spillovers. To this end, by using a sample of Italian manufacturing firms over the period 2004–2006 provided by the Xth UniCredit‐Capitalia survey (2008), we have analyzed the role of R&D in firm productivity by using a spatial autoregressive model. In so doing, we have allowed the productivity of each firm to be affected by the productivity of nearby firms. Results show that R&D significantly affects Italian firm productivity and that productivity spillovers across firms matter. Moreover, productivity is found to be positively affected by intrasectoral R&D spillovers, while intersectoral R&D spillovers do not have a significant effect.     

From R&D to Innovation and Economic Growth in the EU

ABSTRACT Over the last two decades many European governments have pursued ambitious research and development (R&D) policies with the aim of fostering innovation and economic growth in peripheral regions of Europe. The question is whether these policies are paying off. Arguments such as the need to reach a minimum threshold of research, the existence of important distance decay effects in the diffusion of technological spillovers, the presence of increasing returns to scale in R&D investments, or the unavailability of the necessary socio‐economic conditions in these regions to generate innovation seem to cast doubts about the possible returns of these sort of policies. This paper addresses this question. A two‐step analysis is used in order to first identify the impact of R&D investment of the private, public, and higher education sectors on innovation (measured as the number of patent applications per million population). The influence of innovation and innovation growth on economic growth is then addressed. The results indicate that R&D investment, as a whole, and higher education R&D investment in peripheral regions of the EU, in particular, are positively associated with innovation. The existence and strength of this association are, however, contingent upon region‐specific socio‐economic characteristics, which affect the capacity of each region to transform R&D investment into innovation and, eventually, innovation into economic growth.     

Innovation and Regional Growth in Mexico: 2000–2010

This paper looks at the factors driving regional growth in Mexico, paying special attention to the potentially growth‐enhancing role of innovation and innovation policy. The analysis combines innovation variables with indicators linked to the formation of adequate social conditions for innovation (the social filter), and spillovers for 31 Mexican states and the Mexico City capital district (the Distrito Federal) during the period 2000–2010. The results indicate that regional economic growth across Mexican states stems from direct investment in research and development (R&D) in areas with favorable social filters and which can benefit not only from knowledge spillovers, but also from being surrounded by rich neighbors with good social conditions. The results stress that, although Mexican innovation policy has been relatively well targeted in order to generate greater economic growth, its relatively modest size may have undermined the attainment of its main objectives.     

The impact of R&D and knowledge spillovers on the economic growth of Russian regions

Russia presents an interesting case of a country which has strived to implement innovation policies since the transition period but so far has achieved mixed results. This study aims to analyze the impact of knowledge production and knowledge spillovers on regional growth in Russia within a framework of endogenous growth models. Applying GMM and spatial error panel modeling techniques to Rosstat data for 80 Russian regions from 2005 to 2013, the authors test the hypothesis about the relevance of R&D and expenditure on technological innovations (H1) and the hypothesis about the relevance of knowledge spillovers (H2) on the growth rates of GRP per capita. Hypothesis 1 was confirmed while Hypothesis 2 was rejected, indicating the absorptive capacities of innovatively lagging regions were not high enough for effective adaptation of new technologies from technologically innovative regions. Inclusion of indicators related to additional channels of knowledge diffusion in regressions resulted in the relevance of FDI and imports of goods and services for regional growth. Results of the study could form the basis for developing innovation policies for the Russian regions.     

Make,Buy, or Both: The Innovation Sourcing Strategy Dilemma after M&A

This paper investigates the effects of mergers and acquisitions (M&A) on corporate research and development (R&D) strategies using firm‐level data on the Spanish manufacturing sector. The focus of the study is to determine whether M&A affects R&D portfolios by increasing or decreasing innovation input, such as in‐house R&D, external R&D or both. The results show that M&A has a negative and significant impact on R&D intensity, decreasing in‐house R&D and external technological sourcing. M&A enables the rationalization of R&D capacity, implying a decrease in R&D efforts. M&A negatively affects both types of R&D, but, on average, the effect is more negative on external R&D.     

Innovation Prone and Innovation Averse Societies: Economic Performance in Europe

Although it is commonly accepted that investing in technology and research and development (R&D) is a basic catalyst for the genesis of economic activity, there is less consensus on the spatial significance and returns of the R&D effort for regional and local economies. It is often argued that innovation resulting from allocating local resources to R&D is likely to spill over to other areas, especially in the framework of open national economies. Hence, the incentive to free-ride increases at the subnational level. This paper shows, however, that in the Western European regional context, regions with higher resources devoted to R&D tend to grow at a greater pace than the remaining spaces. Nevertheless, the passage from R&D to innovation and growth is not achieved in a similar way across Europe. Local social conditions play an important role in the formation of what can be defined as ‘innovation prone’ and ‘innovation averse’ societies. Innovation prone regions are those featured by a weak social filter, which facilitates the transformation of innovation into growth. Conversely, regions burdened by rigid labor markets, shortage of skills, outward migration of able individuals, and an aging of the workforce are less prone to assimilate innovation and to transform it into economic activity. They make up the innovation averse societies in Europe.     

Government support and firm innovation performance in Chinese science and technology parks: The perspective of firm and sub-park heterogeneity

Science and technology parks (STPs) are established to promote the firm innovation performance via agglomeration economy and government support in China. On-site qualified firms obtain government R&D funding as a type of government support, and they are offered differential innovation service caused by the differential capabilities of sub-parks which scatter throughout a single city. It is debatable whether those government supports at firm and sub-park levels can promote firm innovation capabilities. This study takes Zhangjiang National Innovation Demonstration Zone, Shanghai as an example. It applies a Tobit regression model to analyse the databases of Zhangjiang Annual Sampling Survey of Firms 2015 and Zhangjiang Development Report 2015. We find out at the firm level, government R&D funding has a significant and positive influence on firms' innovation, but government R&D funding generates a crowing-out effect the innovation performance of on-site firms with more R&D investment themselves. At the sub-park level, innovation service agencies of sub-parks do not exert an important role in influencing firms' innovation, and they even have negative moderating effects on the relationship between firm R&D investment and firm innovation performance. It reflects the mismatch between innovation service of STPs and firms' needs in China.     

Research and development intensive clusters and regional competitiveness

Modern cluster theory provides reasons for positive external effects that accrue from the interaction of spatially proximate firms operating in common and related fields of economic activity. In this paper, we examine the impact of R&D-intensive clusters as a key factor of regional competitiveness on productivity growth. In relying on a hybrid approach of cluster identification, we examine effects of cluster specialization and diversity for a panel of German NUTS-3 regions in 2003–2019. After controlling for regional characteristics and unobserved heterogeneity, a robust cluster strength effect (i.e., specialization) on productivity growth is found within the context of conditional convergence across German regions. With regard to the underlying mechanisms, we find that the presence of multiple R&D-intensive clusters in specific technological fields is most strongly linked to higher levels of regional productivity growth. We also find that advantages from cluster specialization are strongest in key industrial sector such as automobile production, machinery, chemical and pharmaceutical products. Overall, our estimates particularly highlight the working of Marshallian externalities in productivity dynamics, while Jacobs-type spillovers tend to be partially realized. These findings indicate that some but not all cluster-based regional development strategies are promising policy tools to foster regional growth processes.     

Location and the Innovation Performance of Commercial GIS Companies

This paper looks at the role of firm size, location, and in‐house research and development (R&D) in the innovation performance of U.S. firms in the commercial geographic information systems (GIS) industry. Data from a survey of 300 GIS firms are presented. The results suggest that innovation‐intensity varies directly with in‐house R&D spending (scaled as a proportion of company sales), but inversely with company size (total employment). Significant regional variations in the innovation performance of GIS firms are identified. It is argued that the geography of innovation is influenced by the spatial distribution of young and/or small firms, in that R&D‐productivity is found to vary inversely with company size. An important finding is that creative inputs to support innovation are almost evenly divided between internal and external sources. A surprising result is that the academic community is not viewed as a particularly important source of new ideas for innovative firms. The paper concludes with a discussion of the implications of the survey data for future empirical work on the GIS sector.     

An Analysis on China Neutral Technological Progress by Embodied Spillovers from North America

This paper empirically discusses the mechanism of China Neutral Technology by Embodied Spillovers from North America, and the effect on China economic growth. The simulations show that the effects of technology spillovers on both the innovating and the receiving economies depend on SS and AC. The three sectors spillovers of North America can improve China's Hicks-neutral technological progress, but only the third industry can increase the output of same industry of China, and decrease the output of other two industries. Based on the simulations, some advices are given on China trade policy.     

Rice R & D Thrusts in the Philippines

1THEPHILIPPINERICESITUA TIONDuringthelastdecade (1991- 2 0 0 0 ) ,annualgrowthin productionslightlyimprovedto 2 3%from 2 2 %duringthepreviousdecade (1981-1990 ) .Duringthelastdecade (1991- 2 0 0 0 ) ,annu algrowthinproductionslightlyimprovedto 2 3%from 2 2 %duringthe previousdecade (1981-1990 ) .Notwithstandingthesteadyincreaseinriceproduction ,thecountryremainedanetriceim porter .In 2 0 0 1,palay (paddy) productioninthecountryhit 12 95Mmtoraround 9 11Mmtofrice .However,inthes…     

An Analysis on the Efficiency of Embodied Spillover between North America and Japan to China

This paper discusses the efficiency of embodied spillover from North America and Japan to China. We suppose that embodied spillovers are transmitted by international trade. The efficiency of a country or an area utilizes the embodied spillovers depends on two aspects,which are AC(Absorption Capacity)and SS(Structural Similarity). The empirical analysis show that China's utilizing efficiency of the embodied spillovers from Japan(0.322 8) is larger than from American(0.187 3).     

Some Micro‐Evidence on the “Porter Hypothesis” from Austrian VOC Emission Standards

This paper presents some micro‐evidence relevant to the “Porter Hypothesis” on the techno‐economic consequences of Austrian Volatile Organic Compound (VOC) emission standards, the most restrictive of their kind in the world. Using firm‐level survey data and complementing it with highly disaggregated foreign trade data, the paper explores whether the standards had a palpable impact on the competitiveness of Austrian manufacturers of paints, coatings, printing inks, and adhesives, whether compliance stimulated innovation in this industry, whether the standards crowded out other, more productive Research and Development (R&D), and whether compliance efforts gave rise to unexpected benefits of compliance. It finds no unequivocal aggregate impact on the competitiveness of regulated firms, yet does find some interesting variation with firm size. Moreover, the standards appear to have dampened import competition. The standards gave rise to considerable changes in firms’ product range and appear to have accelerated the rate of product innovation in the regulated industry. R&D spending to develop compliant products is found to be very unevenly distributed, mainly due to technological and, to a lesser extent, organizational factors. There is evidence that compliance efforts displaced or postponed existing R&D projects. However, there is also evidence that search for compliant products yielded unexpected and beneficial ideas, knowledge, and competencies.     

Geographical Spillovers and University Research: A Spatial EconometricPerspective

Using data for U.S. metropolitan statistical areas, an earlier study of aggregate local geographic research spillovers generated by universities (Anselin et al.1997) was extended to a sectorally disaggregated level. These findings suggest the existence of significant sectoral variation with respect to local university effects on innovation. Apparent differences were found across sectors with respect to the “mix” of applied local knowledge inputs in general, and the extent to which university research plays a role in innovation in particular. The main conclusion is that local university spillovers seem to be specific to certain industries, such that at the two‐digit SIC level, no university spillover effects are at work in the Drugs and Chemicals (SIC28) and in the Machinery (SIC35) sectors. On the contrary, very strong and significant university research spillovers are evidenced in the Electronics (SIC36) and the Instruments (SIC38) industries. These spillovers extend beyond the boundary of the MSA within a 75‐mile range from the central city.     

“Bad Neighborhood” and Internet Adoption in Poor Countries: What is behind the Persistent Digital Gap?

The paper investigates the determinants of Internet adoption in poor countries, focusing on the role of macro‐geographic location (neighborhood). It is argued that neighboring countries are interconnected by various kinds of spillovers, including knowledge spillovers as well as spillovers of norms and attitudes that affect individual adoption behavior. The empirical findings support the view that Internet adoption is affected by adoption rates in neighboring countries, even when controlling for a wide range of covariates. Addressing potential endogeneity concerns using an instrumental variable approach moreover suggests these relationships to be causal. The findings imply that international policies to support Internet adoption in poor countries might be more effective if they target groups of neighboring countries rather than single countries in order to better exploit spillovers between neighboring countries.     

Nontariff measures,trade deflection,and market expansion of exporters in China

This study focuses on the influence of Nontariff Measures (NTMs) on market expansion of exporters using the Chinese custom database during 2003–2011. Besides confirming the negative effect of prior export activity and positive effect of neighboring spillovers, this paper finds robust negative effects of NTMs on entry of new markets at the firm-market level. The empirical results show that a trade deflection effect exists at the microscale and prefers the markets with lower degree of NTMs. Furthermore, exporters with fewer trade links or in processing trade seem lacking in ability to channel new markets under the pressure of NTMs in their existing markets.     

Competitiveness Policy Options: The Technology-Regions Connection

ABSTRACT Competitiveness can be defined as the ability of an economy to maintain stable or increasing market shares in an economic activity while sustaining stable or increasing living shares for those who participate in it. Government policy in all countries has strong effects on competitiveness. With the turn away from a Cold War economy the Clinton Administration has pursued a technology policy explicitly linked to the quest for heightened national competitiveness. It is based on a rejection of Reagan-Bush era analyses of the competitiveness problem, which centered on cost reduction in industry. There are many different forms of technology policy for competitiveness, however. Some center on labor quality, while others center on technological spillovers between industries. An effective policy should promote technological spillovers in the economy. All such policies, moreover, are only effective if they are organized and governed properly. The Clinton-Gore policy has many different programs and methods of governance. This paper argues that it should reinforce the regional level of organization of technology policy formulation and implementation.     

Performance of High-Technology Firms in a Peripheral Resource-Based Economy: Alberta,Canada

In the 1980s high technology moved into the forefront in regional development throughout North America and Europe as a leading strategy. The attraction of high technology more recently spilled over into the province of Alberta, a peripheral region in western Canada whose government is seeking to diversify its resource-based economy. This paper focused upon the performance of high technology firms measured by financial growth, R&D activity, employment created, and marketing. Data were drawn from a 100 percent survey of all identifiable high-tech firms which constituted the first academic inquiry into Alberta's high-technology development. Research hypotheses relating gross revenues and net profit to independent firms and subsidiaries, gross revenues to age of firm, and R&D activity to independent firms and subsidiaries were tested. The results indicate that Alberta's high technology sector is composed mainly of small independent firms in the early stages of growth. Widely divergent revenue and profit trends were found among all firms while 41 percent of the respondents received government assistance to fund R&D programs. A young high-technology base is reflected further in the small size of the labor force although three out of four firms created jobs between 1980 and 1984. Marketing was a key area of performance identified by respondent firms as companies attempted to diversify away from local markets. Overall, the systematic policies of support by the Alberta government were found to assist the growth of the high-tech industry. Whether or not this growth will be sufficient to substantially diversify this resource-based economy in a peripheral Canadian region remains to be seen. Further research, particularly in the area of job creation, is necessary to assess the impact of high-technology firms over a longer period.     

Innovation Expectations and Patenting in Private and Public R&D Projects

In this paper, we investigate how the innovation expectations of public financiers are related to realized patents. The analysis is based on a novel data set of collaborative R&D projects subsidized by the Finnish Agency of Technology and Innovation (Tekes) and the European Regional Development Fund (ERDF) during the period 2000–2004. Innovation expectations are measured using reports submitted by Tekes experts during ex ante assessments of projects. Our probit model results reveal that Tekes' patent expectations are positively related to realized patents for projects led by private firms (but not by public organizations). For large organizations, Tekes' innovation expectations are better at predicting patenting.     

Utility Model of Technical Innovation in Construction Industry under Moderate Monopoly

Due to lacking driving force to promote the technology innovation in China construction industry,it may be a better choice to encourage the willing of construction enterprise to undergo the technology innovation by moderate monopoly.So,firstly it is supposed that the super construction enterprise can participate in the industry competition comprehensively,then,this paper proves the possibility to determine the number of monopoly construction enterprises in terms of moderate monopoly by the output mode of enterprise.Secondly,taking the state-owned building enterprise as the main body,it is further supposed that the construction enterprise could improve the productivity by raising the R&D in terms of moderate monopoly and the R&D should be invested in each period of manufacturing,then,this paper has established the utility mode of construction technology innovation by the Lagrange function in terms of moderate monopoly.At last,the finding shows that the technology innovation utility of China construction enterprise is not significant and this conclusion is supported by the growth trend of China construction industry in 1991-2004 and the investigation of the resistance factor to China construction technology innovation.