Scandinavian Working Papers in Economics

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

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

Patrik Gustavsson Tingvall () and Andreas Poldahl ()
Additional contact information
Patrik Gustavsson Tingvall: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, Postal: CESIS - Centre of Excellence for Science and Innovation Studies, Royal Institute of Technology, SE-100 44 Stockholm, Sweden
Andreas Poldahl: Statistics Sweden (SCB), Postal: Statistics Sweden (SCB), 701 89 Örebro, Sweden

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

JEL-codes: L10; L60; O10; O30

24 pages, June 3, 2011

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