Empirical Studies on Firm-Level Innovation

In this dissertation I exploit di erent sources of rich rm-level data to study how rms organise their innovation activities in a world characterised by increasing globalisation and rapid technological change. The empirical analysis presented in this thesis aims to contribute to a robust evidence base to inform public policy. Chapter 2 considers the impact that information and communication technology (ICT) has on observed rms choices over organisational form. It nds that rms that are more ICT-intensive tend to purchase a greater amount of services on the market and are more likely to purchase o shore. Chapter 3 investigates the relationship between the location of private sector R&D labs and university research departments in Great Britain across di erent industries. The strongest evidence for co-location is for foreign-owned pharmaceutical labs and frontier chemistry research departments consistent with multinationals sourcing technology internationally. Chapter 4 extends the analysis of the previous chapter by using continuous measures of spatial proximity for the analysis of co-location of R&D labs and universities and by considering rm-university interactions directly. Chapter 5 provides a set of novel facts about EU pharmaceutical patenting rms engaged in the use of foreign inventors for drug discovery activity. It explores dimensions of rm-level heterogeneity similar to the ones used to analyse trade patterns. These are also shown to be a key feature in the internationalisation of inventors. Chapter 6 provides evidence on how changes in the employment of high-skilled workers (inventors) in a foreign location a ect a rm's domestic employment of the same type of worker. It nds evidence consistent with the idea that foreign and domestic inventors are complementary in the production of knowledge