The Role of Spillovers in Research and Development Expenditure in Australian Industries

41 Pages Posted: 10 Jun 2016 Last revised: 13 Oct 2016

See all articles by Sasan Bakhtiari

Sasan Bakhtiari

Australian Department of Industry; Crawford School, ANU

Robert V. Breunig

Australian National University (ANU) - Crawford School of Public Policy

Date Written: August 11, 2016

Abstract

Using administrative data from firms in Australia that conduct research and development (R&D), we examine how R&D activity of other firms and public institutions affect a firm's own R&D expenditure. We distinguish between the impact of peers, suppliers and clients. We examine whether geographical proximity and industrial clustering affect R&D spillovers. Overall, we detect positive effects on R&D expenditure from spillovers from peers and clients to firms that are nearby; within 25 or 50 km. R&D expenditure by academia, unlike by government bodies, has a positive influence on a firm's own R&D expenditure within state boundaries. We fail to find any significant role for industrial clusters in augmenting spillover effects.

Keywords: Research and Development, Innovation, R&D Spillovers, Supply Chains, Industrial Clustering

JEL Classification: D22, O31, O33, R12

Suggested Citation

Bakhtiari, Sasan and Breunig, Robert V., The Role of Spillovers in Research and Development Expenditure in Australian Industries (August 11, 2016). Available at SSRN: https://ssrn.com/abstract=2790628 or http://dx.doi.org/10.2139/ssrn.2790628

Sasan Bakhtiari (Contact Author)

Australian Department of Industry ( email )

341 George Street
Sydney, NSW 2000
Australia

HOME PAGE: http://sites.google.com/site/sasanbakhtiari

Crawford School, ANU ( email )

7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200
Australia

HOME PAGE: http://sites.google.com/site/sasanbakhtiari

Robert V. Breunig

Australian National University (ANU) - Crawford School of Public Policy ( email )

7 Liversidge Street
Lennox Crossing
Canberra, ACT 0200
Australia
61261252148 (Phone)

HOME PAGE: http://https://crawford.anu.edu.au/crawford_people/content/staff/rbreunig.php

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