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R&D Reactions to High-Technology Import Competition

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  • Scherer, F M
  • Huh, Keun

Abstract

For a seventeen-year panel covering 308 U.S. manufacturers, the authors analyze companies' R&D spending reactions to changes in high-technology imports. On average, R&D/sales ratios were reduced in the short run as imports rose. Reactions tended to be more aggressive the more concentrated the markets were in which the firms operated, when company R&D operations were multinational, and with greater company size and diversification. Reactions were less aggressive when special trade barriers had been erected. Reactions became more aggressive over the longer run. Copyright 1992 by MIT Press.

Suggested Citation

  • Scherer, F M & Huh, Keun, 1992. "R&D Reactions to High-Technology Import Competition," The Review of Economics and Statistics, MIT Press, vol. 74(2), pages 202-212, May.
  • Handle: RePEc:tpr:restat:v:74:y:1992:i:2:p:202-12
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