Issue: Autumn 1996
Pages: pp. 502-522
Authors: Tor Jakob Klette
Title: R&D, Scope Economies, and Plant Performance
Abstract: In this article I present an alternative specification of knowledge production and derive a structural econometric model with some desirable properties. I provide a simple and less data-intensive framework for empirical studies of the relationship between firm performance and R&D. The main empirical findings are as follows: (i) R&D has a positive effect on performance, (ii) the appropriable part of knowledge capital depreciates at a rate of .2, (iii) there are significant spillover effects of R&D across lines of business within a firm, and (iv) there are significant spillovers in R&D across firms that belong to the same interlocking group of firms.
Management of Technological Innovation and R&D (O320)
Production
Capital and Total Factor Productivity
Capacity (D240)
Organization of Production (L230)
Industry Studies: Manufacturing: General (L600)
Research and Development (6212)
Industry Studies Construction (6340)
Microeconomics Theory of Production (0223)
Market Structure: Industrial Organization and Corporate Strategy (6110)
Industry Studies Manufacturing General (6310)