Working Paper: CEPR ID: DP2775
Authors: Yuko Kinoshita
Abstract: This Paper examines the effects of two faces of R&D (innovation and development of absorptive or learning capacity) and technology spillovers from FDI (foreign direct investment) on a firm’s productivity growth.Using firm-level panel data on Czech manufacturing firms between 1995 and 1998, I find that:1) The learning effect of R&D is more important than the innovative effect of R&D in explaining the productivity growth of a firm2) Technology spillovers from FDI occur for firms that are more R&D intensive3) Spillovers from foreign joint ventures are insignificant for Czech manufacturing firms4) The extent of technology spillovers is greater in oligopolistic sectors (electrical machinery and radio and television) than in non-oligopolistic sectors (food, non-metallic minerals, and other manufacturing).
Keywords: absorptive capacity; foreign direct investment; R&D spillovers
JEL Codes: F23; L60; O12
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| R&D investment (innovative R&D) (O32) | productivity growth (O49) |
| absorptive capacity (O36) | productivity growth (O49) |
| R&D investment (O32) | productivity growth (O49) |
| technology spillovers from FDI (F20) | productivity growth (O49) |
| R&D investment (O32) | technology spillovers from FDI (F20) |
| foreign joint ventures (F23) | productivity growth (O49) |
| extent of technology spillovers (O36) | productivity growth (O49) |