Intra-Firm Knowledge Spillovers vs. Inter-Firm Spillover Friction
Nonexperimental plants within treatment firms increased management practice adoption by 17.5 percentage points without direct consulting, mirroring the 12.0 percentage point increase in control plants. Conversely, inter-firm spillovers were negligible: only 16% of 96 independent local firms had heard of the experiment and only 2% knew specific details, localized exclusively to Tarapur and Umbergaon.