ESTIMATION OF THE KNOWLEDGE SPILLOVER EFFECTS BETWEEN FIRMS IN BIO-RELATED INDUSTRIES
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Knowledge spillover is a kind of externality originating from imperfect appropriation of R&D
performances, which implies that the knowledge created by one agent could be transmitted to other
related agents by affecting their R&D or other economic performances. For the estimation of knowledge
spillover effects based on firm-level patent data between firms in bio-related industries, patents
production function, as a proxy of knowledge production function, is formulated and estimated.
Knowledge spillovers from some industries to other industries are observed and strong competition
effects also seem to exist.