This paper takes issue with the current view of R&D and industry structure according to which cooperation in R&D effort is Pareto improving over competition. We argue that this literature fails to capture the essence of the Western experience, and secondly, that it fails to capture the essence...

R&D subsidies are a common tool of technology policy, but little is known about the effects they have on the behavior of firms. This paper presents evidence on the effects that R&D subsidies have on the R&D effort of recipients, and on the probability that a firm will participate in a program...

It is often claimed that the opportunities to create new manufacturing jobs in open, high-cost economies such as Norway, are concentrated in activities which are technologically advanced and knowledge intensive. This paper examines the relationship between job creation and innovation, as...

The central prediction of the Aghion, Bloom, Blundell and Howitt model is an inverted U-shaped relationship between innovation and competition. The model is built on the assumption of a product market and has not yet been tested on the service sector. Using detailed firm-level data on Swedish...

We use cluster analysis to describe the regional linkages that arise through funding of research contract networks in the EU. We find five significantly different kinds of networks, that we label: 1) Technological development, 2) Basic research, 3) Quasi-elite, 4) Elite and 5) Southern. These...

Using firm-level data from the 1986 Census of Manufactures of Taiwan, we examine the links between technical efficiency and firm investments in technology and exports. Stochastic production frontier techniques are used to estimate the technical efficiency of firms by investments in technology as...

This article addresses an issue that is debated in the economics of innovation literature, namely the existence of increasing returns to R&D expenditures and firm size, in product innovation. It explores further how the firm's structural characteristics and contextual factors affect the...

Empirical analyses of research and development find strong evidence that these activities tend to cluster geographically. Clusters are thought to emerge from the presence of localized positive externalities. This paper presents a model of this clustering behaviour. We find that phase changes in...

This paper reexamines broadly. from the standpoint of innovation, the arguments for vertical integration in the U.S. telecommunications industry in light of structural change since the breakup of the Bell System. While basic and applied research became the casualty of the 1984 breakup and the...

We test whether predictions of the Aghion et al. (Aghion, P., Bloom, N., Blundell, R., Griffith, R. and Howitt, P. (2004) Competition and Innovation: An Inverted U Relationship. NBER Working Paper series, No. 9269.) model are supported by firm-level data. In particular, we analyze if there is an...