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Why Do Some Firms Undertake R&D Whereas Others Do Not?

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Author Info
Richard Harris
Mary Trainor

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Abstract

Data for the UK show Northern Ireland remains at the bottom of the productivity leaguetable, and that its R&D performance is consistently amongst the lowest across the UKregions. This paper analyses the data from a survey of some 250 matched firms operating inNorthern Ireland (approximately half undertaking R&D and half not), in order to provide amore detailed analysis of attitudes to undertaking R&D in the Province. We consider a rangeof factors that determine whether R&D takes place (such as absorptive capacity, marketorientation, business objectives, and competitive advantages). Conditional on whether R&Doccurs, the analysis then looks at, firstly, the determinants of the R&D capital stock andintensity; before concentrating on those firms who undertook no R&D and analysing whichfactors might make them likely to engage in such activities in the future. Policy conclusionsare then drawn as to what might be done to boost both the amount of R&D undertaken andthe number of firms engaged in R&D in the Province.

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Paper provided by Spatial Economics Research Centre, LSE in its series SERC Discussion Papers with number 0020.

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Date of creation: Apr 2009
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Handle: RePEc:cep:sercdp:0020

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Related research
Keywords: R&D; regional policy; matching;

Find related papers by JEL classification:
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
O18 - Economic Development, Technological Change, and Growth - - Economic Development - - - Regional, Urban, and Rural Analyses
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

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References listed on IDEAS
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  1. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  2. Jacques Mairesse & Pierre Mohnen, 2005. "The Importance of R&D for Innovation: A Reassessment Using French Survey Data," The Journal of Technology Transfer, Springer, vol. 30(2_2), pages 183-197, 01. [Downloadable!]
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  3. Almeida, Paul & Dokko, Gina & Rosenkopf, Lori, 2003. "Startup size and the mechanisms of external learning: increasing opportunity and decreasing ability?," Research Policy, Elsevier, vol. 32(2), pages 301-315, February. [Downloadable!] (restricted)
  4. Acs, Zoltan J & Audretsch, David B, 1988. "Innovation in Large and Small Firms: An Empirical Analysis," American Economic Review, American Economic Association, vol. 78(4), pages 678-90, September. [Downloadable!] (restricted)
  5. Van de Ven, Wynand P. M. M. & Van Praag, Bernard M. S., 1981. "The demand for deductibles in private health insurance : A probit model with sample selection," Journal of Econometrics, Elsevier, vol. 17(2), pages 229-252, November. [Downloadable!] (restricted)
  6. James D. Adams & Eric P. Chiang & Jeffrey L. Jensen, 2000. "The Influence of Federal Laboratory R&D on Industrial Research," NBER Working Papers 7612, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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This page was last updated on 2009-11-27.


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