Research and development (R&D) play a central role in productivity and economic growth. In this paper we focus on the R&D expenditure decisions of individual firms and how they are affected by the R&D activity of other firms.
Using administrative data from firms in Australia that conduct R&D, we:
examine how the R&D activity of other firms and public institutions affects a firm’s own R&D expenditure
distinguish between the impact of peers, suppliers and clients
examine whether geographical proximity and industrial clustering affect R&D spillovers