01880cam a22002297 4500001000600000003000500006005001700011008004100028100001900069245015000088260006600238490004100304500001000345520094500355530006101300538007201361538003601433710004201469830007601511856003701587856002601624w1815NBER20140712201723.0140712s1986 mau||||fs|||| 000 0 eng d1 aJaffe, Adam B.10aTechnological Opportunity and Spillovers of R&Dh[electronic resource]:bEvidence from Firms' Patents, Profits and Market Value /cAdam B. Jaffe. aCambridge, Mass.bNational Bureau of Economic Researchc1986.1 aNBER working paper seriesvno. w1815 a1986.3 aThis paper presents evidence that firms' patents, profits and market value are systematically related to the"technological position" of firms' research programs. Further, firms are seen to "move" in technology space in response to the pattern of contemporaneous profits at different positions. These movements tend to erode excess returns."Spillovers" of R&D are modelled by examining whether the R&D of neighboring firms in technology space has an observable impact on the firm's R&D success. Firms whose neighbors do much R&D produce more patents per dollar of their own R&D,with a positive interaction that gives high R&D firms the largest benefit from spillovers. In terms of profit and market value, however, their are both positive and negative effects of nearby firms' R&D. The net effect is positive for high R&D firms, but firms with R&D about one standard deviation below the mean are made worse off overall by the R&D of others. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web.2 aNational Bureau of Economic Research. 0aWorking Paper Series (National Bureau of Economic Research)vno. w1815.4 uhttp://www.nber.org/papers/w1815 uurn:doi:10.3386/w1815