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Technological Opportunity and Spillovers of R&D: Evidence from Firms' Patents, Profits and Market Value

NBER Working Paper No. w1815
1986
  • 69
    Citations
  • 10,980
    Usage
  • 2
    Captures
  • 0
    Mentions
  • 0
    Social Media
Metric Options:   Counts1 Year3 Year

Metrics Details

  • Citations
    69
    • Citation Indexes
      69
  • Usage
    10,980
    • Abstract Views
      10,664
    • Downloads
      316
  • Captures
    2
    • Exports-Saves
      1
      • SSRN
        1
    • Readers
      1
      • SSRN
        1
  • Ratings
    • Download Rank
      193,506

Paper Description

This paper presents evidence that firms' patents, profits and market value are systematically related to the"technological position" of firms' research programs. Further, firms are seen to "move" in technology space in response to the pattern of contemporaneous profits at different positions. These movements tend to erode excess returns."Spillovers" of R&D are modelled by examining whether the R&D of neighboring firms in technology space has an observable impact on the firm's R&D success. Firms whose neighbors do much R&D produce more patents per dollar of their own R&D,with a positive interaction that gives high R&D firms the largest benefit from spillovers. In terms of profit and market value, however, their are both positive and negative effects of nearby firms' R&D. The net effect is positive for high R&D firms, but firms with R&D about one standard deviation below the mean are made worse off overall by the R&D of others.

Bibliographic Details

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