The existence of R&D spillovers: A cost function estimation with random coefficients

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Abstract

This is a study of the effects of R&D spillovers on the cost and production structures of Finnish manufacturing firms. Confidential data on firms is used to estimate a translog cost function system with random coefficients. Although the results suggest that intra-industry spillovers are present in Finnish manufacturing, the findings regarding inter-industry spillovers are inconclusive. The variable cost reduction associated with spillovers is positive, but relatively low. Spillovers reduce the demand for labor but increase the demand for materials. Spillovers also reduce the willingness to pay for capital inputs.
Original languageEnglish
Pages (from-to)525-541
JournalEconomics of Innovation and New Technology
Volume11
Issue number6
DOIs
Publication statusPublished - Jan 2002
MoE publication typeA1 Journal article-refereed

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