Barge-Gil, Andrés and López, Alberto (2012): R&D Determinants: accounting for the differences between research and development.
Download (231Kb) | Preview
The determinants of R&D are an important topic of industrial economics. The classical Schumpeterian hypotheses about the influence of size and market power have been complemented with the role played by industry determinants, such as demand pull, technological opportunity and appropriability, in determining R&D investments. However, R&D has always been considered as a whole, even though research and development are different activities with different purposes, knowledge bases, people involved and management styles. We take advantage of a new panel database of innovative Spanish firms (PITEC) to distinguish between research and development efforts of firms. We analyze the role jointly played by traditional R&D determinants in driving research and development, accounting for the differences between both activities. Results show that demand pull and appropriability have a higher effect on development, while technological opportunity is more influential for research. Differences are statistically significant, important in magnitude, and robust to the use of different indicators for demand pull, technological opportunity and appropriability and to several robustness checks.
|Item Type:||MPRA Paper|
|Original Title:||R&D Determinants: accounting for the differences between research and development|
|Keywords:||R&D Determinants; Schumpeterian hypotheses; Demand pull; Technological opportunity; Appropriability|
|Subjects:||O - Economic Development, Technological Change, and Growth > O3 - Technological Change; Research and Development; Intellectual Property Rights|
|Depositing User:||Alberto López|
|Date Deposited:||13. Sep 2012 06:05|
|Last Modified:||12. Feb 2013 15:36|
Abramovsky, L., Kremp, E., López, A., Schmidt, T. and Simpson, H. (2009). Understanding co-operative innovative activity: Evidence from four European countries, Economics of Innovation and New Technology, 18(3), 243-265.
Aghion, P., Bloom, N., Blundell, R., Griffith, R., Howitt, P. (2005). Competition and innovation: An inverted U-relationship. Quarterly Journal of Economics 120, 701-728.
Arrow, K. (1962). Economic welfare and the allocation of resources for invention. In Nelson, R.R. (Ed.).The rate and direction of inventive activity. Princeton University Press. Princeton, NJ.
Artés, J. (2009) Long-run versus short-run decisions: R&D and market structure in Spanish firms. Research Policy, 38 (1): 120-132.
Asheim, B.T. and Coenen, L. (2005). Knowledge bases and regional innovation systems: Comparing Nordic clusters, Research Policy, 34, 1173-1190.
Baltagi, B.H. (2005). Econometric Analysis of Panel Data. Wiley, Chichester.
Barge-Gil, A., López, A. (2011). R versus D: Estimating the differentiated effect of research and development on innovation results. MPRA Paper 29083, University Library of Munich, Germany.
Bessen, J., Maskin, E. (2009). Sequential innovation, Patents and Imitation. RAND Journal of Economics 40(4), 611-635.
Blundell, R., Griffith, R., Van Reenen, J. (1999). Market share, market value and innovation in a panel of British manufacturing firms. Review of Economic Studies 66: 529-554.
Brouwer, E., Kleinknecht, A. (1999). Keynes-plus? Effective demand and changes in firm-level R&D: an empirical note. Cambridge Journal of Economics 23, 385-391.
Cabral, L. (2003). R&D competition when firms choose variance. Journal of Economics & Management Strategy 12(1), 139-150.
Cassimann, B, Veugelers, R. (2002). R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium. American Economic Review 92(4), 1169-1184.
Chiesa, V. (2001). R&D strategy and organisation. Managing technical change in dynamic contexts. London. Imperial College Press.
Chiesa, V. and Frattini, F. (2007). Exploring the differences in performance measurement between research and development: evidence from a multiple case study, R&D Management, 37(4), 283-301.
Christensen, C.M., Bower, J.L. (1996). Customer power, strategic investment and the failure of leading firms. Strategic Management Journal 17(3), 197-218.
Cohen, W. M., Levin, R.C., Mowery, D.C. (1987) Firm size and R&D intensity: a re-examination, Journal of Industrial Economics 35, 543-563.
Cohen, W. M., Levin, R.C. (1989) Empirical studies of innovation and market structure, In Handbook of Industrial Organization, ed. R. Schmalanse, R.D. Willing (eds), 1059-1107. Elsevier Publishers.
Cohen, W., Levinthal, D., (1989). Innovation and learning: The two faces of R&D. The Economic Journal 99, 397), 569-596.
Cohen, W., Levinthal, D., (1990). Absorptive capacity: A new perspective on learning and innovation. Administrative Science Quarterly 35, 1), 128-152.
Cohen, W. M. (1995). “Empirical studies of innovative activity”. In Handbook of the Economics of Innovation and Technological Change, ed. P. Stoneman, 182–264. Oxford: Blackwell.
Cohen, W.M., Klepper, S. (1996a). A reprise of size and R&D. Economic Journal 106: 925-951.
Cohen, W.M., Klepper, S. (1996b). Firm size and the nature of innovation within industries: The case of process and product R&D. Review of Economics and Statistics 78, 232-243.
Cohen, W.M. (2010). Fifty years of empirical studies of innovative activity and performance. In Hall, B., Rosenberg, N. (Eds). Handbook of the Economics of Innovation vol 1, 129-213. Norh-Holland.
Crepon, B., Duguet, E., Mairesse, J. (1998). Research, innovation and productivity: An econometric analysis at the firm level. Economics of Innovation and New Technology 7: 115-158.
Czarnitzki, Dirk and Andrew Toole (2011). Patent Protection, Market Uncertainty, and R&D Investment, Review of Economics and Statistics 93(1), 147-159.
Galbraith, J.K. (1952). American Capitalism: The Concept of Countervailing Power. Houghton Mifflin. Boston, MA.
Geroski, P. (1990). Innovation, technological opportunity and market structure”, Oxford Economic Papers 42: 586-602.
Griffith, R., Huergo, E., Mairesse, J. and Peters, B. (2006). Innovation and productivity across four European countries, Oxford Review of Economic Policy, 22(4), 483-498.
Griliches, Z., Hall, B., Pakes, A. (1991). R&D, Patents and Market Value Revisited: Is There a Second (Technological Opportunity) Factor? Economics of Innovation and New Technology 1, 183-202.
Harris, M.N., Rogers, M., Siouclis, A. (2003). Modelling firm innovation using panel data probit estimators. Applied Economic Letters 10(11): 683-686.
Holmstrom, B. (1989). Agency costs and innovation. Journal of Economic Behavior & Organization 12(3): 305-327.
Kleinknecht, A., Verspagen, B (1990). Demand and innovation. Schmookler re-examined. Research Policy 19, 387-394.
Klevorick, A., Levin, R., Nelson, R., and Winter, S. (1995). On the sources and significance of inter-industry differences in technological opportunities. Research Policy, 24: 185–205.
Kortum, S., Lerner, J. (1999). What is behind the recent surge in patenting? Research Policy 28(1), 1-22. Kwon, I. (2009). R&D portfolio and market structure. Economic Journal 120, 313-323.
Kwon, I. (2012). Patent races with secrecy. Journal of Industrial Economics. Forthcoming
Hall, B., Ziedonis, R. (2001). The Patent Paradox Revisited: An Empirical Study of Patenting in the U.S. Semiconductor Industry, 1979-1995. RAND Journal of Economics 21(1), 101-128.
Hussinger, K. (2008). R&D and subsidies at the firm level: an application of parametric and semiparametric two-step selection models. Journal of Applied Econometrics 23, 729-747.
Laursen, K., Salter, A. (2006). Open for innovation: the role of openness in explaining innovation performance among U.K. manufacturing firms. Strategic Management Journal 27, 131-150.
Leifer, R. and Triscari, T. (1987). Research versus Development: Differences and similarities, IEEE Transactions on Engineering Management, 34(2), 71-78.
Lerner, J. (2009). The Empirical Impact of Intellectual Property Rights on Innovation: Puzzles and Clues. American Economic Review 99(2), 343-348.
Levin, R.C., Cohen, W.M., Mowery, D.C. (1985). R&D, appropriability, opportunity and market structure: New evidence on some Schumpeterian hypotheses. American Economic Review. Papers and Proceedings 75(2): 20-24.
Levin, R., Klevorick, A., Nelson, R., Winter, S. (1987). Appropiating the Returns from Industrial Research and Development. Brookings Papes on Economic Activity 3, 783-820.
Levin, R., Reiss, P. (1988). Cost-reducing and demand-creating R&D with spillovers. RAND Journal of Economics 19, 538-556.
Mairesse, J. and Mohnen, P. (2010). Using innovation surveys for econometric analysis, in Hall, B.H., Rosenberg, N. (Eds.), Handbook of the Economics of Innovation.
Mansfield, E., Schwartz, M., Wagner, S. (1981). Imitation costs and patents. An empirical study. The Economic Journal 91: 907-918.
Mansfield, E. (1986). Patents and innovaton. An empirical study. Management Science 32(2): 173-181.
Nelson, R. (1982). The role of knowledge in R&D efficiency. Quarterly Journal of Economics 97, 453-470.
Nelson R., Winter, S. (1982). An evolutionary theory of economic change. Harvard University Press. Cambridge, Massachussets and London.
Nelson, R. (2006). Reflections on "The simple economics of basic scientific research": looking back and looking forward. Industrial and Corporate Change 15(6): 903-917.
OECD (2002). Frascati Manual. Proposed Standard Practice for Surveys on Research and Experimental Development. OECD Publications: Paris.
OECD (2005). Oslo Manual. Guidelines for collecting and interpreting innovation-3rd Edition. OECD Publications: Paris.
Piva, E., Vivarelli, M. (2007). Is demand-pulled innovation equally important in different groups of firms? Cambridge Journal of Economics 31, 691-710.
Porter, M.E. (1990). The competitive advantage of nations. Free Press, New York, NY.
Raymond, W., Mohnen, P., Palm, F., van der Loeff, S. (2010). Persistence of innovation in Dutch manufacturing: is it spurious? The Review of Economics and Statistics 92(3), 495-504.
Rosen, P.J. (1991). Research and development with asymmetric firm sizes. RAND Journal of Economics 22, 411-429.
Scherer, F.M. (1980). Industrial Market Structure and Economic Performance. Rand McNally, Chicago.
Schmookler, J. (1962). Economic sources of inventive activity. Journal of Economic History 22: 1-10.
Schmookler, J. (1966) Invention and Economic Growth. Cambridge, Mass: Harvard University Press.
Schumpeter, J.A. (1942). Capitalism, Socialism and Democracy. Harper. New York. NY.
Sirilli, G. and Evangelista, G. (1998). Technological innovation in services and manufacturing: Results from Italian surveys, Research Policy, 27(9), 881 -899.
Van Beers, C., Kleinknecht, A., Ortt, R. and Verburg, R. (2008). Determinants of innovative behavior. A firm’s internal practices and its external environment. Palgrave. New York.
Veugelers, R., Cassiman, B. (2005). R&D cooperation between firms and universities: some empirical evidence from Belgian manufacturing. International Journal of Industrial Organization, 23 (5-6), 355-379.
Von Zedtwitz, M., Gassman, O. (2002). Market versus technology drive in R&D internationalization: four different patterns of managing research and development. Research Policy 31, 569-588.