Bounding the Effects of R & D: An Investigation Using Matched Establishment-Firm Data

RAND JOURNAL OF ECONOMICS, Vol. 27, No. 4

Posted: 5 Feb 1998

See all articles by Adam B. Jaffe

Adam B. Jaffe

Brandeis University; Motu Economic and Public Policy Research; National Bureau of Economic Research (NBER)

James D. Adams

Dept of Economics, Rensselaer Polytechnic Institute; National Bureau of Economic Research (NBER)

Abstract

We find that the effects of parent firm R & D on plant-level productivity are diminished by both the geographic and technological distance between the research lab and the plants, that productivity appears to depend on R & D per plant rather than on the total amount, and that spillovers from technologically related firms are significant but also depend on R & D intensity rather than on total industry R & D. These results suggest that the "dilution" of R & D across multiple target plants reduces its potency sufficiently that spillovers may not be a source of industrywide or economywide increasing returns.

JEL Classification: L1, O3

Suggested Citation

Jaffe, Adam B. and Adams, James D., Bounding the Effects of R & D: An Investigation Using Matched Establishment-Firm Data. RAND JOURNAL OF ECONOMICS, Vol. 27, No. 4, Available at SSRN: https://ssrn.com/abstract=4966

Adam B. Jaffe (Contact Author)

Brandeis University ( email )

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James D. Adams

Dept of Economics, Rensselaer Polytechnic Institute ( email )

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