NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Identifying Technology Spillovers and Product Market Rivalry

Nicholas Bloom, Mark Schankerman, John Van Reenen

NBER Working Paper No. 13060
Issued in April 2007
NBER Program(s):   IO   PR

Support for R&D subsidies relies on empirical evidence that R&D "spills over" between firms. But firm performance is affected by two countervailing R&D spillovers: positive effects from technology spillovers and negative business stealing effects from R&D by product market rivals. We develop a general framework showing that technology and product market spillovers have testable implications for a range of performance indicators, and then exploit these using distinct measures of a firm's position in technology space and product market space. Using panel data on U.S. firms between 1980 and 2001 we show that both technology and product market spillovers operate, but technology spillovers quantitatively dominate. The spillover effects are also present when we analyze three high tech sectors in finer detail. Using the model we evaluate the net spillovers from three alternative R&D subsidy policies.

download in pdf format
   (516 K)

email paper

This paper is available as PDF (516 K) or via email.

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w13060

Published:

  • Nick Bloom & Mark Schankerman & John Van Reenen, 2005. "Identifying technology spillovers and product market rivalry," Proceedings, Federal Reserve Bank of San Francisco. ,
  • Nicholas Bloom & Mark Schankerman & John Van Reenen, 2013. "Identifying Technology Spillovers and Product Market Rivalry," Econometrica, Econometric Society, vol. 81(4), pages 1347-1393, 07.

Users who downloaded this paper also downloaded these:
Keller w15442 International Trade, Foreign Direct Investment, and Technology Spillovers
Jaffe w1815 Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits and Market Value
Lychagin, Pinkse, Slade, and Van Reenen w16188 Spillovers in Space: Does Geography Matter?
Crespi, Criscuolo, Haskel, and Slaughter w13959 Productivity Growth, Knowledge Flows, and Spillovers
Keller and Yeaple w9504 Multinational Enterprises, International Trade, and Productivity Growth: Firm-Level Evidence from the United States
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us