A spatial analysis of R&D: the role of industry proximity
|A spatial analysis of R&D: the role of industry proximity
|Year of Publication
|Economics of Innovation and New Technology
This paper employs individual firm data in order to check the existence of industry-spatial effects alongside other microeconomic determinants of R&D investment. Spatial proximity is defined by a measure of firms’ industry distance based on trade intensity between sectors. The spatial model specified here refers to the combined spatial-autoregressive model with autoregressive disturbances. In modelling the outcome for each location as dependent on a weighted average of the outcomes of other locations, outcomes are determined simultaneously. The results of the spatial estimation suggest that in their R&D decision firms benefit from spillovers originating from neighbouring industries.
|r&d, spatial dependence, spatial models, spatial weights