R&D and Productivity in Corporate Groups: An Empirical Investigation Using a Panel of French Firms

@inproceedings{Blanchard2005RDAP,
  title={R&D and Productivity in Corporate Groups: An Empirical Investigation Using a Panel of French Firms},
  author={Pierre Blanchard and Jean Pierre Huiban and Patrick Sevestre},
  year={2005}
}
Using a panel of more than 3,100 French corporate groups' affiliates and parent companies, we estimate a production function model where we enable the productivity of a firm to depend on the knowledge produced by the R&D activities of the other companies in the group. We find indeed that a firm's productivity may significantly be enhanced thanks to the R&D capital of the other affiliates. This enhancement can be estimated to be, for the corporate group as a whole, between 30% and 40% of the… CONTINUE READING