Estimating the influence of KIBS spillovers through the knowledge production function and the role of international trade

• DOI: 10.1016/j.ject.2024.04.002
• Publication Date: 2024-04-12T20:23:12Z
• Authors: Fernando Félix; Varun Gupta; Luis Rubalcaba
• Keywords: Returns to scale; Capital (architecture); Knowledge Production; Scale Effects

A research gap exists regarding how and development (R&D) expenditures contribute to the generation of innovative spillovers through knowledge-intensive business services (KIBS), particularly within manufacturing subsectors. These have a networking effect on innovation products in subsectors, as captured by knowledge production function (KPF). The study proposes two-stage model for analyzing elasticities economies scale that arise from estimating singular functions regional trade system. This is tested case agreement United States, Mexico, Canada (USMCA). main results express R&D embodied KIBS significant outputs, each USMCA countries and, reveal increasing returns scale. Also, KPF elasticities, capital labor variables, proved be inelastic exhibited constant Additionally, different estimates one expose diverse technologies among three countries.