Many writers have claimed that research and development (R&D) has two faces. In addition to the conventional role of stimulating innovation, R&D enhances technology transfer (absorptive capacity). We explore this idea empirically using a panel of industries across twelve OECD countries. We find...

This paper examines the application of count data models to firm level panel data on technological innovations. The model the authors propose exhibits dynamic feedback and unobserved heterogeneity. We develop a fixed effects estimator that generalizes the standard Poisson and negative binomial...

How much does US-based R&D benefit other countries and through what mechanisms? We test the ‘technology sourcing’ hypothesis that foreign research labs located on US soil tap into US R&D spillovers and improve home country productivity. Using panels of UK and US firms matched to patent data...