Absorptive capacity, R&D spillovers, and public policy

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dc.contributor.author Leahy, Dermot
dc.contributor.author Neary, J. Peter
dc.date.accessioned 2009-07-27T16:10:18Z
dc.date.available 2009-07-27T16:10:18Z
dc.date.issued 2004-05
dc.identifier.uri http://hdl.handle.net/10197/1312
dc.description.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. en
dc.description.sponsorship Economic and Social Research Council (ESRC) en
dc.format.extent 497726 bytes
dc.format.mimetype application/pdf
dc.language.iso en en
dc.publisher University College Dublin. School of Economics en
dc.relation.ispartofseries UCD Centre for Economic Research Working Paper Series en
dc.relation.ispartofseries WP04/18 en
dc.subject Absorptive capacity of R&D en
dc.subject R&D spillovers en
dc.subject Competition policy en
dc.subject Industrial policy en
dc.subject Research joint ventures en
dc.subject.classification O31 en
dc.subject.classification L13 en
dc.subject.lcsh Absorptive capacity (Economics) en
dc.subject.lcsh Research and development projects en
dc.subject.lcsh Industrial policy en
dc.title Absorptive capacity, R&D spillovers, and public policy en
dc.type Working Paper en
dc.internal.authorid UCD0042 en
dc.internal.availability Full text available en
dc.internal.webversions Publisher's version en
dc.internal.webversions http://www.ucd.ie/economics/research/papers/2004/WP04.18.pdf en
dc.status Not peer reviewed en
dc.neeo.contributor Leahy|Dermot|aut| en
dc.neeo.contributor Neary|J. Peter|aut|UCD0042 en


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