Rupert Harrison

University Research and the Location of Business R&D

We investigate the relationship between the location of private sector R&D labs and university research departments in Great Britain. We combine establishment-level data on R&D activity with information on levels and changes in research quality from the Research Assessment Exercise. The strongest evidence for co-location is for pharmaceuticals R&D, which is disproportionately located near to relevant university research, particularly 5 or 5* rated chemistry departments. This relationship is stronger for foreign-owned labs, consistent with multinationals sourcing technology internationally. We also find some evidence for co-location with lower rated research departments in industries such as machinery and communications equipment.

Product market reforms, labour market institutions and unemployment

We analyze the impact of product market competition on unemployment and wages, and how this depends on labour market institutions. We use differential changes in regulations across OECD countries over the 1980s and 1990s to identify the effects of competition. We find that increased product market competition reduces unemployment, and that it does so more in countries with labour market institutions that increase worker bargaining power. The theoretical intuition is that both firms with market power and unions with bargaining power are constrained in their behaviour by the elasticity of demand in the product market. We also find that the effect of increased competition on real wages is beneficial to workers, but less so when they have high bargaining power. Intuitively, real wages increase through a drop in the general price level, but workers with bargaining power lose out somewhat from a reduction in the rents that they had previously captured.

Product Market Reform and Innovation in the EU

European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth. European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth.

Product market competition, innovation and productivity growth

European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth. European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth.

Product Market Reform and Innovation in the EU*: Product market reform and innovation in the EU

European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth. European Union countries have implemented widespread reforms to productmarkets in order to stimulate competition, innovation and economic growth. We provideempirical evidence that the reforms carried out under the EU Single Market Programme(SMP) were associated with increased product market competition, as measured by areduction in average profitability, and with a subsequent increase in innovation intensityand productivity growth for manufacturing sectors. In our analysis we exploit exogenousvariation in the expected impact of the SMP across countries and industries to identify theeffects of reforms on average profitability, and the effects of profitability on innovationand productivity growth.