Absorptive capacity, R&D spillovers, and public policy

Files in This Item:
File Description SizeFormat 
ISSCWP200316.pdf578.2 kBAdobe PDFDownload
Title: Absorptive capacity, R&D spillovers, and public policy
Authors: Leahy, Dermot
Neary, J. Peter
Permanent link: http://hdl.handle.net/10197/1886
Date: 20-Oct-2003
Abstract: Empirical 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.
Type of material: Working Paper
Publisher: University College Dublin. Institute for the Study of Social Change (Geary Institute)
Series/Report no.: ISSC Discussion Paper Series; WP2003/16
Keywords: Absorptive capacity of R&DCompetition policyIndustrial policyR&D spilloversResearch joint ventures
Subject LCSH: Research, Industrial
Industrial policy
Competition
Other versions: http://www.ucd.ie/geary/publications/2003/wp16.pdf
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Geary Institute Working Papers

Show full item record

Google ScholarTM

Check


This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.