Template-type: ReDIF-Paper 1.0
Author-Name: Lokshin, Boris
Author-Email: lokshin@merit.unu.edu
Author-Workplace-Name: UNU-MERIT
Author-Name: Belderbos, René 
Author-Email: r.a.belderbos@tue.nl
Author-Workplace-Name: Katholieke Universiteit Leuven, Eindhoven University of Technology
Author-Name: Carree, Martin 
Author-Email: M.Carree@os.unimaas.nl
Author-Workplace-Name: University of Maastricht
Title: The Productivity Effects of Internal and External R&D: Evidence From a Dynamic 
	 Panel Data Model 
Abstract:  We examine the impact of internal and external R&D on labor productivity 
	 in a 6-year panel of Dutch manufacturing firms. We apply a dynamic 
	 linear panel data model that allows for decreasing or increasing returns 
	 to scale in internal and external R&D and for economies of scope. We 
	 find complementarity between internal and external R&D, with a positive 
	 impact of external R&D only evident in case of sufficient internal R&D. 
	 These findings confirm the role of internal R&D in enhancing absorptive 
	 capacity and hence the effective utilization of external knowledge. The 
	 scope economies due the combination of internal and external R&D are 
	 accentuated by decreasing results to scale at high levels of internal 
	 and external R&D. The analysis indicates that on average productivity 
	 grows by increasing the share of external R&D in total R&D.  
Classification-JEL: O32, O33, D24
Keywords: R&D, Innovation, Complementarity, Panel Data
Series: UNU-MERIT Working Papers
Creation-Date: 2007
Number: 2007-026
File-URL: https://unu-merit.nl/publications/wppdf/2007/wp2007-026.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2007026