Open-sourcing, labor productivity, and the moderating role of R&D

Scientific publication represents an observable form of selective knowledge disclosure through which firms signal capabilities, access knowledge networks, and attract talent. Building on the literature linking sectoral openness to productivity growth, we examine whether firms’ propensity to publish scientific work amplifies the productivity returns to R&D investment. We find that adopting an open-sourcing strategy is positively associated with labor productivity among R&D-intensive firms, controlling for unobserved heterogeneity at the firm and sector level, hence controlling for technology. This result is consistent with theories emphasizing the role of knowledge diffusion and absorptive capacity for firm performance. Methodologically, the paper extends the Hausman–Taylor-type approach for the identification of time-invariant variables in a fixed effect framework. Monte Carlo simulations show that this approach reliably identifies the impact of these regressors on productivity.