Abstract
The aim of this study is to investigate the relationship between competition and innovation through the knowledge spillover effect. In particular, we investigate whether R&D competition is sensitive to economic shock. To this end, we consider a period of time related also to the 2008 financial crisis. We implement an empirical analysis of 879 worldwide R&D-intensive firms. In order to measure technological proximity, we use two approaches: one based on Jaffe industry weight matrix, relative to patents distributed across technology classes; one based on trade intensity between sectors using input–output matrix data. The empirical results show a positive effect of R&D externalities on competitive interactions before the beginning of crisis and a negative one after it. These findings are robust with respect to the procedure employed in the estimation method.
Highlights
This paper aims to examine the relation between research and development (R&D) competitions on firm’s own R&D efforts
With respect to the existing literature, our study provides a twofold contribution: on the one hand, we investigate whether R&D competition is sensitive to financial shocks
We explore the competition effect by implementing an alternative empirical procedure based on trade intensity between sectors using input–output matrix data (Timmer, Dietzenbacher, Los, Stehrer & de Vries., 2015)
Summary
This paper aims to examine the relation between R&D competitions on firm’s own R&D efforts. The analysis covers the period 2002–2010 and it is performed in two stages. With respect to the existing literature, our study provides a twofold contribution: on the one hand, we investigate whether R&D competition is sensitive to financial shocks. To this end, we split our sample into two periods, one before the beginning of the crisis (2002-2006), and one after it (2007-2010). We explore the competition effect by implementing an alternative empirical procedure based on trade intensity between sectors using input–output matrix data (Timmer, Dietzenbacher, Los, Stehrer & de Vries., 2015).
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
