Buying and Selling Research and Development Services, 1997 to 2002
AbstractResearch 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper 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.
Date of creation: 2006
Date of revision:
Contact details of provider:
Web page: http://www.merit.unu.edu
Research and Development; Public-Private Partnerships;
Other versions of this item:
- Mohnen, Pierre & Rose, Antoine & Rosa, Julio, 2006. "Buying and Selling Research and Development Services, 1997 to 2002," MERIT Working Papers 018, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-06-17 (All new papers)
- NEP-BEC-2006-06-17 (Business Economics)
- NEP-INO-2006-06-17 (Innovation)
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.:
- Claudio A. Piga & Marco Vivarelli, 2003.
"Internal and External R&D: A Sample Selection Approach,"
Papers on Entrepreneurship, Growth and Public Policy
2004-05, Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group.
- Claudio A . Piga & Marco Vivarelli, 2004. "Internal and External R&D: A Sample Selection Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 66(4), pages 457-482, 09.
- Keilbach, Max & Bönte, Werner, 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.
- Bonte, Werner & Keilbach, Max, 2005. "Concubinage or marriage? Informal and formal cooperations for innovation," International Journal of Industrial Organization, Elsevier, vol. 23(3-4), pages 279-302, April.
- Bruno Cassiman & David Pérez Castrillo & Reinhilde Veugelers, 2000.
"Endogeneizing know-how flows through the nature of R&D investments,"
Economics Working Papers
512, Department of Economics and Business, Universitat Pompeu Fabra, revised Mar 2001.
- 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.
- Cassiman, Bruno & Pérez-Castrillo, J David & Veugelers, Reinhilde, 2000. "Endogenizing Know-How Flows Through the Nature of R&D Investments," CEPR Discussion Papers 2622, C.E.P.R. Discussion Papers.
- Cassiman, Bruno & Pérez-Castrillo, David, 2000. "Endogenizing know-how flows through the nature of R&D investments," IESE Research Papers D/428, IESE Business School.
- David Pérez-Castrillo & Bruno Cassiman & Reinhilde Veugelers, 2000. "Endogeneizing know-how flows through the nature of R&D investments," UFAE and IAE Working Papers 464.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Fritsch, Michael & Lukas, Rolf, 1998.
"Who Cooperates on R&D?,"
Freiberg Working Papers
1998,12, TU Bergakademie Freiberg, Faculty of Economics and Business Administration.
- Veugelers, Reinhilde, 1997. "Internal R & D expenditures and external technology sourcing," Research Policy, Elsevier, vol. 26(3), pages 303-315, October.
- 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.
- Belderbos, Rene & Carree, Martin A & Diederen, Bert & Lokshin, Boris & Veugelers, Reinhilde, 2003.
"Heterogeneity in R&D Cooperation Strategies,"
CEPR Discussion Papers
4021, C.E.P.R. Discussion Papers.
- Arora, Ashish & Gambardella, Alfonso, 1990. "Complementarity and External Linkages: The Strategies of the Large Firms in Biotechnology," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 361-79, June.
- Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
- Kleinknecht, Alfred & Reijnen, Jeroen O. N., 1992. "Why do firms cooperate on R&D? an empirical study," Research Policy, Elsevier, vol. 21(4), pages 347-360, August.
- Bayona, Cristina & Garcia-Marco, Teresa & Huerta, Emilio, 2001. "Firms' motivations for cooperative R&D: an empirical analysis of Spanish firms," Research Policy, Elsevier, vol. 30(8), pages 1289-1307, October.
- repec:ner:leuven:urn:hdl:123456789/101500 is not listed on IDEAS
- Miotti, Luis & Sachwald, Frederique, 2003. "Co-operative R&D: why and with whom?: An integrated framework of analysis," Research Policy, Elsevier, vol. 32(8), pages 1481-1499, September.
- repec:ner:leuven:urn:hdl:123456789/101214 is not listed on IDEAS
- 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.
- repec:ner:maastr:urn:nbn:nl:ui:27-15273 is not listed on IDEAS
- Hagedoorn, John & Link, Albert N. & Vonortas, Nicholas S., 2000. "Research partnerships1," Research Policy, Elsevier, vol. 29(4-5), pages 567-586, April.
- repec:ner:maastr:urn:nbn:nl:ui:27-4287 is not listed on IDEAS
- repec:ner:maastr:urn:nbn:nl:ui:27-4274 is not listed on IDEAS
- Tether, Bruce S., 2002. "Who co-operates for innovation, and why: An empirical analysis," Research Policy, Elsevier, vol. 31(6), pages 947-967, August.
- 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.
- 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.
- 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.
- Martin Woerter, 2007.
"Driving Forces for Research and Development Strategies : An Empirical Analysis Based on Firm-level Panel Data,"
KOF Working papers
07-184, KOF Swiss Economic Institute, ETH Zurich.
- Martin Woerter, 2011. "Driving forces for research and development strategies: an empirical analysis based on firm-level panel data," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 20(7), pages 611-636, March.
- Ulrich Witt & Christian Zellner, 2007.
"How Firm Organizations Adapt to Secure a Sustained Knowledge Transfer,"
Papers on Economics and Evolution
2007-19, Max Planck Institute of Economics, Evolutionary Economics Group.
- Ulrich Witt & Christian Zellner, 2009. "How firm organizations adapt to secure a sustained knowledge transfer," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 18(7), pages 647-661.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ad Notten).
If references are entirely missing, you can add them using this form.