Estimating intersectoral technology spillovers for Brazil

Abstract

This paper aims to evaluate the main intersectoral R&D flows in the Brazilian economy, determining their direction and magnitude. Unlike other studies that focus exclusively on rent spillovers flows of R&D, this paper also calculates spillovers with total spending on innovation in addition to R&D expenditure. In the case of developing countries, where R&D is of lower relative importance, we assume that technological effort is measured more accurately if it is considered as different types of innovative expenditure. We used data from the Technological Innovation Survey, conducted by the Brazilian Institute of Geography and Statistics with the support of Ministry of Science and Technology and data from an input–output matrix for the Brazilian economy, calibrated by Laboratorio de Analises Territoriais e Setoriais—LATES of the Federal University of Juiz de Fora. The analysis is from the year 2011 and covers 32 sectors of economic activity resulting from the compatibility of the two databases. The main results show a mapping of the intersectoral flow of knowledge embodied both by the total expenditure on innovation and by in-house R&D to Brazil for the year 2011. It is important to highlight the wealth of detail of such a mapping, as it characterizes not only by sectoral interdependence of these aspects, but it also shows the direction of flows, the sectoral hierarchy in terms of “donation” of technical knowledge and the intersectoral flows in terms of technological intensity.