We study whether a firm’s total factor productivity dynamics is positively influenced by its ownR&D activity and by the technological spillovers generated at the intra- and inter-sectorial level. Our approach corrects simultaneously for the endogeneity and the selectivity biases introduced by the use of a firm’s own R&D as aregressor. The evidence suggests that a firm’s involvement in R&D activities accounts for significant productivity gains. Firms also benefit from spillovers originating from their own industries, as well as from innovative upstream sectors.
|Journal||Journal of Productivity Analysis|
|Early online date||4 Jun 2013|
|Publication status||Published - Jun 2014|