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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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Publisher Info
Paper provided by Max Planck Institute of Economics, Group for Entrepreneurship, Growth and Public Policy in its series Discussion 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

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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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  3. Evangelista, Rinaldo & Perani, Giulio & Rapiti, Fabio & Archibugi, Daniele, 1997. "Nature and impact of innovation in manufacturing industry: some evidence from the Italian innovation survey," Research Policy, Elsevier, vol. 26(4-5), pages 521-536, December. [Downloadable!] (restricted)
  4. Bruno Cassiman & Reinhilde Veugelers, 2002. "R&D Cooperation and Spillovers: Some Empirical Evidence from Belgium," American Economic Review, American Economic Association, vol. 92(4), pages 1169-1184, September. [Downloadable!] (restricted)
  5. 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)
  6. Montmarquette, Claude & Mahseredjian, Sophie & Houle, Rachel, 2001. "The determinants of university dropouts: a bivariate probability model with sample selection," Economics of Education Review, Elsevier, vol. 20(5), pages 475-484, October. [Downloadable!] (restricted)
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  8. Audretsch, David B, 1991. "New-Firm Survival and the Technological Regime," The Review of Economics and Statistics, MIT Press, vol. 73(3), pages 441-50, August. [Downloadable!] (restricted)
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    Other versions:
  13. Richard C. Levin & Peter C. Reiss, 1988. "Cost-Reducing and Demand-Creating R&D with Spillovers," RAND Journal of Economics, The RAND Corporation, vol. 19(4), pages 538-556, Winter. [Downloadable!] (restricted)
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  18. Rabah Amir & John Wooders, 1999. "Effects of One-Way Spillovers on Market Shares, Industry Price, Welfare, and R & D Cooperation," Journal of Economics & Management Strategy, Blackwell Publishing, vol. 8(2), pages 223-249, 06. [Downloadable!] (restricted)
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  19. 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. [Downloadable!] (restricted)
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  21. 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)
  22. Kaiser, Ulrich, 2002. "An empirical test of models explaining research expenditures and research cooperation: evidence for the German service sector," International Journal of Industrial Organization, Elsevier, vol. 20(6), pages 747-774, June. [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. 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:
  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. 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:
  4. 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:
  5. 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!]
  6. 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:
  7. Nishaal Gooroochurn & Aoife Hanley, 2006. "A Tale of Two Literatures: Transaction Cost and Property Rights in Innovation Outsourcing," Occasional Papers 17, Industrial Economics Division. [Downloadable!]
    Other versions:
  8. 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!]
  9. 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:
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