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EU-US differences in the size of R&D intensive firms: do they explain the overall R&D intensity gap?

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  • Raquel Ortega-Argilés
  • Andries Brandsma

Abstract

The average firm size of the top R&D investors among US-based companies is smaller than that of the EU-based firms. Does this help to explain why the US has a greater R&D intensity, or is the greater firm size in the EU, just as its lower R&D intensity, determined by the sectors in which the top R&D investors are operating? Using data from the 2006 EU Industrial R&D Investment Scoreboard, the size differential between EU and US R&D performers is more closely examined. Despite great differences between sectors, the overall distribution of R&D investments by companies in both economies is remarkably similar, as opposed to the distribution of the R… D/sales ratios. Copyright , Beech Tree Publishing.

Suggested Citation

  • Raquel Ortega-Argilés & Andries Brandsma, 2010. "EU-US differences in the size of R&D intensive firms: do they explain the overall R&D intensity gap?," Science and Public Policy, Oxford University Press, vol. 37(6), pages 429-441, July.
    • Handle: RePEc:oup:scippl:v:37:y:2010:i:6:p:429-441
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    File URL: http://hdl.handle.net/10.3152/030234210X508633
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    Cited by:

    1. Castellani, Davide & Piva, Mariacristina & Schubert, Torben & Vivarelli, Marco, 2019. "R&D and productivity in the US and the EU: Sectoral specificities and differences in the crisis," Technological Forecasting and Social Change, Elsevier, vol. 138(C), pages 279-291.
    2. Pietro Moncada-Paternò-Castello & Nicola Grassano, 2022. "The EU vs US corporate R&D intensity gap: investigating key sectors and firms [A primer on innovation and growth]," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 31(1), pages 19-38.
    3. Pietro Moncada-Paternò-Castello & Sara Amoroso & Michele Cincera, 0. "Corporate R&D intensity decomposition: different data, different results?," Science and Public Policy, Oxford University Press, vol. 47(4), pages 458-473.
    4. repec:agr:journl:v:4(621):y:2019:i:4(621):p:19-34 is not listed on IDEAS
    5. Z. A. Mamed’yarov, 2021. "The Uneven Development Paradox of the High-Tech Sector Amid a Comparable Economic Growth in the European Union and the United States," Studies on Russian Economic Development, Springer, vol. 32(5), pages 555-563, September.
    6. Yvonne McNulty & Chris Brewster, 2016. "Theorizing the Meaning(s) of 'Expatriate': Establishing Boundary Conditions," John H Dunning Centre for International Business Discussion Papers jhd-dp2016-05, Henley Business School, University of Reading.
    7. Cevikarslan, Salih, 2013. "Optimal patent length and patent breadth in an R&D driven market with evolving consumer preferences: An evolutionary multi-agent based modelling approach," MERIT Working Papers 2013-020, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    8. Mihaela DIACONU, 2019. "Business R&D investments in the EU: Main dynamics and economic effects," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(621), W), pages 19-34, Winter.
    9. Davide Castellani & Mariacristina Piva & Torben Schubert & Marco Vivarelli, 2018. "The source of the US /EU Productivity Gap:Less and less effective R&D," LEM Papers Series 2018/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    10. Castellani, Davide & Piva, Mariacristina & Schubert, Torben & Vivarelli, Marco, 2016. "The Productivity Impact of R&D Investment: A Comparison between the EU and the US," IZA Discussion Papers 9937, Institute of Labor Economics (IZA).
    11. Pietro Moncada-Paterno-Castello & Peter Voigt, 2013. "The effect of innovative SMEs' growth to the structural renewal of the EU economy - A projection to the year 2020," JRC Research Reports JRC83400, Joint Research Centre.
    12. Raquel Ortega-Argilés, 2012. "The Transatlantic Productivity Gap: A Survey Of The Main Causes," Journal of Economic Surveys, Wiley Blackwell, vol. 26(3), pages 395-419, July.

    More about this item

    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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