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CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology KTH/CESIS Working Paper Series in Economics and Institutions of Innovation

No 251:
Determinants of Firm R&D: The Role of Relationship-specific Interactions for R&D Spillovers

Patrik Gustavsson Tingvall () and Andreas Poldahl ()

Abstract: Research and Development (R&D) is a key component behind technological development and economic growth; therefore, understanding the drivers of R&D is crucial. An interesting question is the role of technology spillovers, transferred by trade, and their impact on firm R&D. Here we analyze not only how international and domestic inter- and intra-industry technology spillovers affect firm R&D but also the relatively unexplored issue of how relationship-specific interactions between buyer and seller affect such spillovers. We find international technology spillovers to be larger and more significant than domestic inter- and intra-industry spillovers. Moreover, relationship-specific interactions between seller and buyer enhance technology spillovers in general and international spillovers in particular.

Keywords: R&D; spillovers; imports; relationship-specific investments; (follow links to similar papers)

JEL-Codes: L10; L60; O10; O30; (follow links to similar papers)

24 pages, June 3, 2011

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