The empirical performance of a new inter-industry technology spillover measure

Abstract

This paper investigates whether a new, easy to construct measure of interindustry knowledge spillovers could be used as an alternative to the existing more sophisticated but rather inflexible (especially with respect to the number of industries that can be distinguished) methods already in use. First, the method is shown to measure pure knowledge spillovers, contrary to earlier input-output based measures picking up with rent spillovers. Second, the measure is computed for the U.S. in 1987 to identify a number of technological clusters. Finally, using a database for American firms, the new measure is shown to yield estimates of spillover impacts similar to the existing knowledge spillover measures, but sometimes strongly different from rent spillover measures. A further novel aspect is the eldi me-5(f).27 Tm -28003 Tc 05(t,2175(tgle-4(sG)5(e)1(aa75(tger-4(sYosimiledgetinaper in)eps)0()4(sedm)5(e)1(as) siob4(s)a)-10( m)5(n an)3)-6(3 )-10(eshowaperim)5( t2(es)6(t)f(b)4(lpil om)5()-1) B)-5(a)4 of

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