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Home Publications How special is the special relationship? Using the impact of US R&D spillovers on UK firms as a test of technology sourcing

How special is the special relationship? Using the impact of US R&D spillovers on UK firms as a test of technology sourcing

Rachel Griffith, Rupert Harrison and John Van Reenen
Journal article

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.

Find the working paper here.

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