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Buying and Selling Research and Development Services, 1997 to 2002

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Author Info
Mohnen, Pierre () (United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology)
Rose, Antoine () (Statistics Canada, Science, Innovation and Electronic Information Division)
Rosa, Julio () (Statistics Canada, Science, Innovation and Electronic Information Division)

Additional information is available for the following registered author(s):

Abstract

Research and development is a crucial activity in the innovation process. Not every firm is in a position to overcome constraints to R&D, such as costs. Those that perform R&D must choose between forming a partnership with other firms, governmental organisations, universities or doing it themselves internally. Others may sell R&D services or buy them. This study provides a statistical portrait of the strategies Canadian companies used in conducting research and development between 1997 and 2002. It is based on data from the Survey of Research and Development in Canadian Industry. During this time period, the majority of R&D spending, around 62%, was of internal origin, that is, it was conducted by the performer. The remaining 38% portion was comprised of two groups: one group representing 24% performed R&D on behalf of another organization, that is, they contracted in. The remaining 14% was conducted by another R&D performer, that is, they contracted out. An estimated 42% of research and development was conducted with no external partnerships. Foreign-controlled firms were much more heavily involved in selling R&D services than their Canadian counterparts. About 22% of all foreign-controlled firms conducted R&D for outside organizations, more than twice the proportion of only 9% of domestic performers. However, Canadian-controlled firms on average spent more on research and development. As a result, the 9% of Canadian-controlled performers allocated 23% of their total R&D spending to selling R&D services, virtually the same proportion as the 25% allocated by foreign-controlled firms.

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Publisher Info
Paper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 018.

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Date of creation: 2006
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Handle: RePEc:dgr:unumer:2006018

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Web page: http://www.merit.unu.edu

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Related research
Keywords: Research and Development Public-Private Partnerships

Find related papers by JEL classification:
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Narula,Rajneesh, 1999. "Choosing between internal and non-internal R&D activities: some technological and economic factors," Research Memoranda 022, Maastricht : MERIT, Maastricht Economic Research Institute on Innovation and Technology. [Downloadable!]
  2. Hagedoorn, John & van Kranenburg, Hans, 2003. "Growth patterns in R&D partnerships: an exploratory statistical study," International Journal of Industrial Organization, Elsevier, vol. 21(4), pages 517-531, April. [Downloadable!] (restricted)
  3. Cassiman, Bruno & Perez-Castrillo, David & Veugelers, Reinhilde, 2002. "Endogenizing know-how flows through the nature of R&D investments," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 775-799, June. [Downloadable!] (restricted)
    Other versions:
  4. Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Blackwell Publishing, vol. 38(4), pages 361-79, June. [Downloadable!] (restricted)
  5. Belderbos, Rene & Carree, Martin & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2004. "Heterogeneity in R&D cooperation strategies," International Journal of Industrial Organization, Elsevier, vol. 22(8-9), pages 1237-1263, November. [Downloadable!] (restricted)
    Other versions:
  6. Bönte, Werner & Keilbach, Max, 2004. "Concubinage or Marriage? Informal and Formal Cooperations for Innovation," ZEW Discussion Papers 04-11, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  7. Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August. [Downloadable!] (restricted)
  8. Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000. "Research partnerships1," Research Policy, Elsevier, vol. 29(4-5), pages 567-586, April. [Downloadable!] (restricted)
  9. Breschi, Stefano & Malerba, Franco & Orsenigo, Luigi, 2000. "Technological Regimes and Schumpeterian Patterns of Innovation," Economic Journal, Royal Economic Society, vol. 110(463), pages 388-410, April. [Downloadable!] (restricted)
  10. Fritsch, Michael & Lukas, Rolf, 2001. "Who cooperates on R&D?," Research Policy, Elsevier, vol. 30(2), pages 297-312, February. [Downloadable!] (restricted)
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  11. Veugelers, Reinhilde & Cassiman, Bruno, 1999. "Make and buy in innovation strategies: evidence from Belgian manufacturing firms," Research Policy, Elsevier, vol. 28(1), pages 63-80, January. [Downloadable!] (restricted)
  12. Claudio A. Piga & Marco Vivarelli, 2003. "Internal and External R&D: A Sample Selection Approach," Discussion Papers on Entrepreneurship, Growth and Public Policy 2004-05, Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy. [Downloadable!]
    Other versions:
  13. Kamien, Morton I. & Zang, Israel, 2000. "Meet me halfway: research joint ventures and absorptive capacity," International Journal of Industrial Organization, Elsevier, vol. 18(7), pages 995-1012, October. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Martin Woerter, 2007. "Driving Forces for Research and Development Strategies : An Empirical Analysis Based on Firm-level Panel Data," Working papers 07-184, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
  2. U. Witt & C. Zellner, 2007. "How Firm Organizations Adapt to Secure a Sustained Knowledge Transfer," Papers on Econonmics and Evolution 2007-19, Max Planck Institute of Economics, Evolutionary Economics Group. [Downloadable!]
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