This paper explores the implications of a simple model of learning and innovation by firms. In this model R&D spillovers are partly determined by firms, rather than by the given economic environment. According to this approach the full effect of spillovers on research productivity of firms...

Although researchers have found that knowledgespillovers increase industrial firms' patenting and productivity, feweconomists have studied how spillovers occur and what this suggests about thebehavior and performance of firms.In the interest of examining theendogeneity of knowledge spillovers, a...