Abstract
This paper studies the influence of metropolitan externalities on productivity for different types of long-run R&D engagement based on information from the Community Innovation Survey. We apply a dynamic general method of moments model to a panel of manufacturing and service firms with different locations in Sweden, classified as a metropolitan region, the largest metropolitan region, a metropolitan city, the largest metropolitan city and a nonmetropolitan area. This analysis generates three distinct results. First, the productivity premium associated with persistent R&D is close to 8 per cent in nonmetro locations and about 14 per cent in the largest city. Second, a firm without any R&D engagement does not benefit at all from the external milieu in metro areas. Third, no productivity premium is associated with occasional R&D effort regardless of the firm's location.
Original language | English |
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Pages (from-to) | 141-154 |
Journal | Industry and Innovation |
Volume | 21 |
Issue number | 2 |
DOIs | |
Publication status | Published - 2014 |
Subject classification (UKÄ)
- Social Sciences Interdisciplinary
Keywords
- innovation strategy
- productivity
- externalities
- metropolitan
- R&D