Spillovers from R&D and other intangible investment: evidence from UK industries

Spillovers from R&D and other intangible investment: evidence from UK industries
Document type
Discussion paper
Author(s)
Goodridge, Peter Haskel, Jonathan Wallis, Gavin
Publisher
Imperial College Business School
Date of publication
16 August 2012
Subject(s)
Trends: economic, social and technology trends affecting business
Collection
Business and management
Material type
Reports

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Many agree that evidence exists consistent with spillovers from R&D. But is there any evidence of spillovers from a broader range of knowledge (or intangible) investments, such as software, design or training? We build data on investment in this broader intangible range for 7 UK industries covering 1992 to 2007. Using the industry-level method in the R&D literature, Griliches (1973) for example, we regress industry TFP growth on external knowledge stock growth, where the latter is the outside industry knowledge stock growth weighted by matrices based on flows of intermediate consumption and workers. Consistent with spillovers from R&D, we estimate a positive statistically significant correlation between industry TFP growth and external R&D knowledge stock growth. Our main new result is that we find statistically significant correlations between TFP growth and external total intangible knowledge stock growth.

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