KTH/CESIS Working Paper Series in Economics and Institutions of Innovation
R&D Strategy, Metropolitan Externalities and Productivity
() and Börje Johansson
Abstract: This paper studies the influence of metropolitan
externalities on productivity for different types of long run R&D
engagement based on information from the Community Innovation Survey. We
apply a dynamic general method of moments model to a panel of manufacturing
and service firms with different locations in Sweden, classified as a
metropolitan region, the largest metropolitan region, a metropolitan city,
the largest metropolitan city and a non-metropolitan area. This analysis
generates three distinct results. First, the productivity premium
associated with persistent R&D is close to 8 percent in non-metro locations
and about 14 percent in the largest city. Second, a firm without any R&D
engagement does not benefit at all from the external milieu in metro areas.
Third, no productivity premium is associated with occasional R&D effort
regardless of the firm’s location.
Keywords: R&D; innovation strategy; productivity; metropolitan; externalities; (follow links to similar papers)
JEL-Codes: C23; O31; O32; (follow links to similar papers)
22 pages, June 5, 2013
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