This article is concerned with explaining the observed positive relationship in a cross section of industries between technical advance and R&D intensity. It presents a set of models to explore how technological opportunity and appropriability affect both of these variables. The models suggest that the key factors explaining the relationship are differences across industries in technological opportunity. Differences in appropriability make the relationship noisy.
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Volume (Year): 19 (1988) Issue (Month): 3 (Autumn) Pages: 478-485 Download reference. The following formats are available: HTML
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