Recombinant innovation and the boundaries of the firm

Recombinant innovation and the boundaries of the firm
Document type
Working Paper
Author(s)
Griffith, Rachel; Sokbae, Lee; Straathof, Bas
Publisher
Institute for Fiscal Studies
Date of publication
1 August 2014
Series
cemmap working paper CWP40/14
Subject(s)
Trends: economic, social and technology trends affecting business
Collection
Business and management
Material type
Reports

This item is only available to registered users

Register now or Log in

Your use of this content is subject to the terms and conditions of this portal

There is considerable interest in understanding how important market frictions are in stiffing the transmission of ideas from one firm to another. Although the theoretical literature emphasises the importance of these frictions, direct empirical evidence on them is limited. This working paper uses comprehensive patent data from the European Patent Office and a multiple spells duration model to provide estimates that suggest that they are substantial. It is around 30% more costly to successfully discover and utilize new ideas created in another firm than in your own. This compares to the increased costs of accessing new ideas across national borders of around 5%, and across technologies of around 20%. These results point towards substantial imperfections in the market for technology.

Related to Trends: economic, social and technology trends affecting business

Follow the money: exploring the link between UK growth and workers' pay packets

Downloadable briefing note looking at the relationship between productivity and pay growth

From precarity to empowerment: women and the future of work

Downloadable paper on ensuring a fair future of work for women

Economic insecurity: the case for a 21st century safety net

Downloadable paper on how economic insecurity is experienced by workers

Agents of change: making innovation agencies as innovative as those they support

Downloadable paper on how government innovation agencies can become better

More items related to this subject