Absorptive capacity, R&D spillovers, and public policy

DC FieldValueLanguage
dc.contributor.authorLeahy, Dermot-
dc.contributor.authorNeary, J. Peter-
dc.date.accessioned2009-07-27T16:10:18Z-
dc.date.available2009-07-27T16:10:18Z-
dc.date.issued2004-05-
dc.identifier.other200418en
dc.identifier.urihttp://hdl.handle.net/10197/1312-
dc.description.abstractEmpirical evidence strongly suggests that R&D increases a firm’s "absorptive capacity" (its ability to absorb spillovers from other firms) as well as contributing directly to profitability. We explore the theoretical implications of this. We specify a general model of the absorptive capacity process and show that costly absorption both raises the effectiveness of own R&D and lowers the effective spillover coefficient. This weakens the case for encouraging research joint ventures, even if there is complete information sharing between its members. It also implies an additional strategic pay-off to policies that raise the level of extra-industry knowledge.en
dc.description.sponsorshipEconomic and Social Research Council (ESRC)en
dc.format.extent497726 bytes-
dc.format.mimetypeapplication/pdf-
dc.language.isoenen
dc.publisherUniversity College Dublin. School of Economicsen
dc.relation.ispartofseriesUCD Centre for Economic Research Working Paper Seriesen
dc.relation.ispartofseriesWP04/18en
dc.subjectAbsorptive capacity of R&Den
dc.subjectR&D spilloversen
dc.subjectCompetition policyen
dc.subjectIndustrial policyen
dc.subjectResearch joint venturesen
dc.subject.classificationO31en
dc.subject.classificationL13en
dc.subject.lcshAbsorptive capacity (Economics)en
dc.subject.lcshResearch and development projectsen
dc.subject.lcshIndustrial policyen
dc.titleAbsorptive capacity, R&D spillovers, and public policyen
dc.typeWorking Paperen
dc.internal.authoridUCD0042en
dc.internal.availabilityFull text availableen
dc.internal.webversionshttp://www.ucd.ie/economics/research/papers/2004/WP04.18.pdf-
dc.statusNot peer revieweden
dc.neeo.contributorLeahy|Dermot|aut|-
dc.neeo.contributorNeary|J. Peter|aut|-
item.grantfulltextopen-
item.fulltextWith Fulltext-
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