University R&D and Firm Productivity: Evidence from Italy

Posted: 17 Nov 2009

See all articles by Giuseppe Medda

Giuseppe Medda

University of Sassari

Claudio A. Piga

Keele University - Keele Management School

Donald S. Siegel

University at Albany, SUNY

Date Written: 2005

Abstract

The purpose of this study is to examine the impact of joint research projects with universities on a firm's growth in total factor productivity (TFP). First, a reduced-form version of the research and development (R&D) capital stock model is estimated.This econometric model is evaluated in light of data from a 1998 survey of 2,222 manufacturing firms in Italy. Analysis of the data, whichcontain information on various types of external research, indicates that external R&D generates significantly higher returns than internal R&D. These positive returns appear to be driven by external research projects with other firms and research centers.On the other hand, investment in external collaborative research with universities does not appear to generate a direct positive return to the firm.Still, the knowledge obtainedfrom interactions with universities may ultimately lead to higher productivity growth. (SAA)

Keywords: Manufacturing industries, Firm productivity, R&D, Return on investment, University-firm relations, Cooperative research

Suggested Citation

Medda, Giuseppe and Piga, Claudio A. and Siegel, Donald S., University R&D and Firm Productivity: Evidence from Italy (2005). The Journal of Technology Transfer, Vol. 30, Issue 1/2, p. 199-205 2005. Available at SSRN: https://ssrn.com/abstract=1506833

Giuseppe Medda (Contact Author)

University of Sassari ( email )

via Muroni 25
Sassari, Sassari 07100
Italy

Claudio A. Piga

Keele University - Keele Management School ( email )

Darwin Building
Staffordshire, ST5 5BG
United Kingdom

Donald S. Siegel

University at Albany, SUNY ( email )

1400 Washington Avenue
Albany, NY 12222
United States
(518) 956-8311 (Phone)

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