Assessing the returns to collaborative research: Firm-level evidence from Italy |
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Authors: | Giuseppe Medda Claudio Piga |
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Institution: | 1. University of Cagliari, Viale Fra’ Ignazio , Cagliari, 09100, Italy;2. Department of Economics , Loughborough University , Leicestershire, LE11 3 TU, UK |
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Abstract: | We use firm-level data from Italian manufacturing firms to assess the relationship between various types of R&D and total factor productivity growth, including collaborative research with other firms and universities. A novel twist to our empirical analysis is that we estimate a sample selection model, which allows us to treat the decision to conduct R&D as endogenous. We find strong evidence of positive returns to collaborative research with other companies, whereas collaborative research with universities does not appear to enhance productivity. This result implies that firms may conduct R&D with universities when appropriability conditions are weak and the outcomes of such research projects do not yield direct strategic benefits. |
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Keywords: | R& D Collaborative research Total factor productivity Sample selection bias |
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