A spatial analysis of R&D: the role of industry proximity

TitleA spatial analysis of R&D: the role of industry proximity
Publication TypeJournal Article
Year of Publication2013
AuthorsCarboni, OA
JournalEconomics 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.

Keywordsr&d, spatial dependence, spatial models, spatial weights