NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits and Market Value

Adam B. Jaffe

NBER Working Paper No. 1815
Issued in 1986
NBER Program(s):   PR

This paper presents evidence that firms' patents, profits and market value are systematically related to the"technological position" of firms' research programs. Further, firms are seen to "move" in technology space in response to the pattern of contemporaneous profits at different positions. These movements tend to erode excess returns."Spillovers" of R&D are modelled by examining whether the R&D of neighboring firms in technology space has an observable impact on the firm's R&D success. Firms whose neighbors do much R&D produce more patents per dollar of their own R&D,with a positive interaction that gives high R&D firms the largest benefit from spillovers. In terms of profit and market value, however, their are both positive and negative effects of nearby firms' R&D. The net effect is positive for high R&D firms, but firms with R&D about one standard deviation below the mean are made worse off overall by the R&D of others.

download in pdf format
   (251 K)

email paper

This paper is available as PDF (251 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Published: American Economic Review, Vo. 76, no. 5, pp. 984-999, December 1986.

Users who downloaded this paper also downloaded these:
Hall w6984 Innovation and Market Value
Griliches Market Value, R&D, and Patents
Hausman, Hall, and Griliches t0017 Econometric Models for Count Data with an Application to the Patents-R&D Relationship
Griliches Patent Statistics as Economic Indicators: A Survey
Griliches Issues in Assessing the Contribution of Research and Development to Productivity Growth
 
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