Understanding The Spanish Business Innovation Gap: The Role Of Spillovers And Firms' Absorptive Capacity

Date Added: Jun 2010
Format: PDF

This paper investigates whether the existence of knowledge spillovers, differences in the capacity of firms to assimilate them and disparities in some human resource management practices are related with the decision to innovate of Spanish firms. In order to do this, the authors employ data from the "Central de Balances" database, which covers both manufacturing and services firms during the period 2003-2007, and use an estimator proposed by Wooldridge (2005) for dynamic random effects discrete choice models. The empirical exercise provides evidence on the positive link between spillovers and the innovative behaviour of companies, not just for the knowledge generated in the same industry, but also for that generated in the same region or by the public sector.