Unintentional technology spillover between two sectors: kinetic approach

Abstract

Here we focus on the attempt to measure spillovers using a kinetic concept. The first purpose of this paper is to review the important factors that increase the assimilation capacity. These factors allow us to suppose that each sector is separated by a different level of position in order to calculate spillover effects. The second purpose is, therefore, to estimate the spillover effects in terms of a kinetic approach. In this paper, we simulated the model using techno-economic data sets (Japanese manufacturing sectors) and were able to obtain some interesting findings and implications: (1) R&D spillover is a positive and significant externality and (2) the institutional effect is a crucial factor to accelerate the assimilation capacity. However, it should be emphasized that this approach does not consider multi-dimensional interactions among sectors. With such estimates, it would be possible to compute not only the absorption and assimilation capacities, but also the technology stock including technology spillover beyond its own industry's borders. We believe that the kinetic approach proposed in this paper could suggest a practical estimating method in terms of calculating absorption and assimilation capacities using the concept of speed, instead of using a regression-based approach.