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Spillovers in product and process innovation: evidence from manufacturing firm

Ornaghi, Carmine (2006) Spillovers in product and process innovation: evidence from manufacturing firm International Journal of Industrial Organization, 24, (2), pp. 349-380. (doi:10.1016/j.ijindorg.2005.07.002).

Record type: Article


This paper proposes a new empirical approach to assess the impact of knowledge spillovers on firms' productivity and demand. I consider a model where process innovation spillovers to other firms raise firms' relative efficiency while technological diffusion of product innovations enhances firms' demand. By modelling knowledge capital as a function of own investment in R&D and spillovers, I can compare the impact of these two complementary sources of knowledge on both the supply and the demand side. The results obtained confirm the findings already highlighted by previous empirical studies that technological externalities affect positively firms' productivity growth. The new finding is that product innovations have a larger technological diffusion than process innovations, both in magnitude and pervasiveness.

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Published date: 2006
Keywords: innovation, knowledge capital, spillovers


Local EPrints ID: 34877
ISSN: 0167-7187
PURE UUID: 2eaab4cc-57e2-40fa-9b79-d6620da61c09

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Date deposited: 19 May 2006
Last modified: 17 Jul 2017 15:49

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