How Special Is the Special Relationship? Using the Impact of U.S. R&D Spillovers on U.K. Firms as a Test of Technology Sourcing

John van Reenen, Rupert Harrison and Rachel Griffith

American Economic Review, 2006, vol. 96, issue 5, 1859-1875

Abstract: We examine the "technology sourcing" hypothesis that foreign research labs located in the U.S. tap into U.S. R&D spillovers and improve home country productivity. We show that U.K. firms that established a high proportion of inventors based in the U.S. by 1990 benefited disproportionately from the growth of U.S. R&D stock over the next ten years. We estimate that U.S. R&D during the 1990s was associated with 5 percent higher Total Factor Productivity for U.K. manufacturing firms in 2000 (about $13 billion), with the majority of benefits accruing to firms with an innovative presence in the U.S. (JEL F23, O32, O33)

Date: 2006
Note: DOI: 10.1257/aer.96.5.1859
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Related works:
Working Paper: How Special is the Special Relationship? Using the Impact of US R&D Spillovers on UK Firms as a Test of Technology Sourcing (2004)
Working Paper: How Special is the Special Relationship? Using the Impact of US R&D Spillovers on UK Firms as a Test of Technology Sourcing (2004)
Working Paper: How special is the special relationship?: using the impact of R&D spillovers on UK firms as a test of technology sourcing (2004)
Working Paper: How special is the special relationship? Using the impact of US R&D spillovers on UK firms as a test of technology sourcing (2004)
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