R&D and the use of spillovers

Using data from German establishments, this study shows that research-intensive firms are less likely to use knowledge spillovers from rivals. The finding supports theoretical analyses by Jovanovic and MacDonald [Jovanovic, B., MacDonald, G.M. 1994. Competitive Diffusion. Journal of Political Economy 102, 24-52] and Eeckhout and Jovanovic [Eeckhout, J., Jovanovic, B., 2002. Knowledge Spillovers and Inequality. American Economic Review 92, 1290-1307].