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Business group affiliation and R&D propensity

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Author Info

  • Enrico Guzzini

    ()
    (Università degli Studi eCampus, Italy)

  • Donato Iacobucci

    ()
    (Dept. of Information Engineering Università Politecnica delle Marche, Italy)

Abstract

In this paper we analyse whether belonging to a business group enhances firms’ R&D propensity and intensity as a result of the greater opportunities to co-ordinate R&D strategies and internalize the positive spillovers. We analyse the organization of R&D management within a business group and how the positioning of firms within the group influences their propensity for and intensity of R&D. We find a strong association between the degree of diversification of business groups and the way in which R&D is organized. Monosector groups are more likely to centralize R&D while diversified groups tend to give more autonomy to affiliated firms. We find also that R&D autonomy is significantly associated with both a higher R&D propensity and intensity in controlled firms. For the firm heading the group, we find that R&D autonomy (centralization) is associated with reduced (increased) R&D intensity, but that this association is less significant for R&D propensity.

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File URL: http://193.205.129.80/repec/cme/wpaper/cmetwp_03_2012.pdf
File Function: First version, 2012
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Bibliographic Info

Paper provided by c.MET-05 - Centro interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione in its series Working Papers with number 1203.

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Length: 28 pages
Date of creation: Jul 2012
Date of revision:
Handle: RePEc:cme:wpaper:1203

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Web page: http://www.cmet.it
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Related research

Keywords: business groups; R&D investment; knowledge spillovers; diversification; R&D management;

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