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Internal and External R&D: A Sample Selection Approach

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Author Info
Claudio A. Piga
Marco Vivarelli ()

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Abstract

This study explicitly takes into account that the decision to enter into an external R&D relationship is related to an antecedent decision to carry out R&D. This calls for a methodological approach that, at the same time, permits the joint analysis of the determinants of the two decisions and corrects for the sample selectivity that is intrinsic in the analysis of external R&D. Based on a sample of Italian manufacturing firms, the results confirm the need to consider explicitly the selectivity issue in the empirical analysis of external R&D. Another contribution made by this study is the managerial implications that can be derived from its empirical model, which provide a better understanding of the factors determining a firm's decision to engage in R&D both independently and with external partners.

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Paper provided by Max Planck Institute of Economics, Entrepreneurship, Growth and Public Policy Group in its series Papers on Entrepreneurship, Growth and Public Policy with number 2004-05.

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Length: 28 pages
Date of creation: Dec 2003
Date of revision:
Handle: RePEc:esi:egpdis:2004-05

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Related research
Keywords: Cooperative R&D; vertical relationships; R&D management; bivariate probit; selectivity;

Other versions of this item:

Find related papers by JEL classification:
L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D

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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.:
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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. Giuseppe Medda & Claudio Piga & Donald Siegel, 2006. "Assessing the returns to collaborative research: Firm-level evidence from Italy," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 15(1), pages 37-50, January. [Downloadable!] (restricted)
    Other versions:
  2. Alessandra Catozzella & Marco Vivarelli, 2007. "The Catalysing Role of In-House R&D in Fostering the Complementarity of Innovative Inputs," IZA Discussion Papers 3126, Institute for the Study of Labor (IZA). [Downloadable!]
  3. Potters, Lesley & Ortega-Argilés, Raquel & Vivarelli, Marco, 2008. "R&D and Productivity: Testing Sectoral Peculiarities Using Micro Data," IZA Discussion Papers 3338, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  4. Andrea Conte & Marco Vivarelli, 2005. "One or Many Knowledge Production Functions? Mapping Innovative Activity Using Microdata," IZA Discussion Papers 1878, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  5. Gianfranco Atzeni & Oliviero Carboni, 2006. "Regional Disparity in ICT Adoption: an Empirical Evaluation of The Effects of Subsidies in Italy," Working Paper CRENoS 200608, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia. [Downloadable!]
  6. Mariacristina Piva & Marco Vivarelli, 2006. "Is Demand-Pulled Innovation Equally Important in Different Groups of Firms?," IZA Discussion Papers 1982, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
  7. Mohnen, Pierre & Rose, Antoine & Rosa, Julio, 2006. "Buying and Selling Research and Development Services, 1997 to 2002," UNU-MERIT Working Paper Series 018, United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology. [Downloadable!]
  8. D’Alessio, Massimiliano & Maietta, Ornella Wanda, 2008. "The Determinants Of Innovation In The Italian Food Industry: The Role Of R&D Networking," 109th Seminar, November 20-21, 2008, Viterbo, Italy 44856, European Association of Agricultural Economists. [Downloadable!]
  9. Gianfranco Atzeni & Claudio Piga, 2005. "R&D investment, Credit Rationing and Sample Selection," Discussion Paper Series 2005_6, Department of Economics, Loughborough University, revised Jun 2005. [Downloadable!]
    Other versions:
  10. Claudio A. Piga & Giuseppe Medda, 2007. "Technological Spillovers and Productivity in Italian Manufacturing Firms," Discussion Paper Series 2007_17, Department of Economics, Loughborough University, revised Jul 2007. [Downloadable!]
    Other versions:
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