Working Paper: NBER ID: w1432
Authors: Adam B. Jaffe
Abstract: This paper uses sales and patent distribution data to establish the market and technological "positions" of firms. A notion of technological proximity of firms is developed in order to quantify potential R&D spillovers. The importance of the position variables and the potential spilover pool in explaining R&D intensity, patent productivity and TFP growth is explored.I find that both technological and market positions are signifi-cant in explaining R&D intensity, and that the technological effects are significant in explaining patent productivity. I cannot distinguish between the two effects in explaining TFP growth. Spillovers are important in all three contexts. Firms in an area where there is a high level of research by other firms do more R&D themselves, they produce more patents per R&D dollar, and their productivity grows faster, even controlling for the increased R&D and patents. These effects are present controlling for both industry and technological position effects.
Keywords: R&D intensity; productivity growth; spillovers; technological opportunity; market demand
JEL Codes: O31; O32; O33
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Market Demand (R22) | R&D Intensity (O32) |
| Technological Opportunity (O33) | R&D Intensity (O32) |
| Technological Opportunity (O33) | Patent Productivity (O34) |
| High R&D Activity by Others (O39) | R&D Intensity (O32) |
| High R&D Activity by Others (O39) | Patent Productivity (O34) |
| High R&D Activity by Others (O39) | TFP Growth (O49) |
| R&D Intensity (O32) | Patent Productivity (O34) |
| R&D Intensity (O32) | TFP Growth (O49) |
| Patent Productivity (O34) | TFP Growth (O49) |
| Spillovers (O36) | R&D Intensity (O32) |
| Spillovers (O36) | Patent Productivity (O34) |
| Spillovers (O36) | TFP Growth (O49) |