Abstract
This paper contributes to the literature on knowledge spillovers and innovation management by differentiating between two types of inter-sectoral RD and whether industrial R&D serve up to the innovative “productization” strategy of services. Results indicate that services’ R&D influences the sales of products and services new to the market of low-tech manufacturing firms, while industrial R&D spillovers impact on the sales of innovations new to the market of knowledge non-intensive business services. In case of high-tech manufacturing firms and knowledge intensive business services only intra-sectoral spillovers matter.
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