Specialisation precedes diversification: R&D productivity effects

Foreman-Peck, James ORCID: https://orcid.org/0000-0001-9826-5725 and Zhou, Peng ORCID: https://orcid.org/0000-0002-4310-9474 2023. Specialisation precedes diversification: R&D productivity effects. Research Policy 52 (7) , 104808. 10.1016/j.respol.2023.104808

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Abstract

We model how R&D enters the innovation system in four ways (intramural, extramural, cooperative, and spillover). Despite measuring three different spillovers together, for a very large sample of European enterprises we conclude that the productivity effects of spillovers were at best smaller than intramural R&D productivity effects. We also find that building on the greater skills and experience of enterprises already undertaking R&D (intensity) raised labour productivity more than providing support for those beginning R&D (extensity). Optimal extramural R&D intensity was higher than the actual level; sample firms could boost productivity either by abandoning extramural R&D or by doing much more. There were substantial differences in our sample between enterprises and countries in terms of R&D spillovers. Greater multinational corporation incidence in new EU members accounted for these countries' high direct R&D intensity productivity, regardless of their generally low overall labour productivity. Absorptive capacity made little difference to the utilisation of spillovers.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Business (Including Economics)
Publisher:	Elsevier
ISSN:	0048-7333
Date of First Compliant Deposit:	17 May 2023
Date of Acceptance:	9 May 2023
Last Modified:	30 Jun 2023 02:54
URI:	https://orca.cardiff.ac.uk/id/eprint/159562

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