R&D Spending and Knowledge Spillovers

27 Pages Posted: 10 Mar 2007 Last revised: 18 Jul 2009

Kim P. Huynh

Government of Canada - Bank of Canada; Indiana University Bloomington - Department of Economics

Zeno Rotondi

UNICREDIT; LUISS Guido Carli University

Date Written: July 15, 2009

Abstract

Understanding firm constraints in R&D expenditures is a key component to addressing broader economic goals. We investigate the role of local intensity of university-industry knowledge spillovers on the amount of firm R&D expenditure. To investigate this issue we use firm-level data
on R&D expenditures from Italy. We find that geographical variation in the R&D intensity of higher education sector, which is shown to be a good proxy for the local intensity of knowledge spillovers, plays an important role for the amount of R&D expenditures financed by the local business sector. We argue that our findings have important policy implications.

Keywords: Firm, R&D, Banking Development, University-Industry Cooperation, Knowledge Spillovers, Geography

JEL Classification: D21, D24, G21, G28, O31, O32, O38

Suggested Citation

Huynh, Kim P. and Rotondi, Zeno, R&D Spending and Knowledge Spillovers (July 15, 2009). Available at SSRN: https://ssrn.com/abstract=968666 or http://dx.doi.org/10.2139/ssrn.968666

Kim P. Huynh

Government of Canada - Bank of Canada ( email )

234 Wellington Street
Ontario, Ottawa K1A 0G9
Canada

Indiana University Bloomington - Department of Economics ( email )

Wylie Hall
Bloomington, IN 47405-6620
United States

Zeno Rotondi (Contact Author)

UNICREDIT ( email )

VIA SPECCHI 16
ROME, 00186
Italy

HOME PAGE: http://docenti.luiss.it/rotondi

LUISS Guido Carli University ( email )

Via O. Tommasini 1
Rome, Roma 00100
Italy

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