Abstract
This paper examines the relationship between knowledge spillover and R&D productivity in Japanese LCD (Liquid Crystal Device) panel manufacturing industry. Using detailed patent data, we find some evidence on three channels of knowledge flows: competitors, subcontractors, and U.S. related firms. We firstly show that, different from previous works, R&D productivities of Japanese LCD manufacturers do not increase with the degree of knowledge spillover, whose indices are based on patent citation data. This evidence implies that negative impact of fierce competition inside Japanese LCD manufacturing industry on R&D productivities overwhelms positive effect of knowledge spillover. We also find that the number of patents of subcontractors and U.S. related firms has positive impact on LCD panel manufacturers, which implies that knowledge spillover from subcontractors and U.S. firms play an important role on R&D productivities in Japanese LCD panel manufacturing industries.
