EU-US differences in the size of R&D intensive firms: Do they explain the overall R&D intensity gap?
AbstractThe average firm size of the top R&D investors among US-based companies is smaller than that of the EU-based firms. Does this help to explain why the US has a greater R&D intensity, or is the higher firm size in the EU, just as its lower R&D intensity, determined by the sectors in which the top R&D investors are operating? Using data on the top-R&D investors from the 2006 EU Industrial R&D Investment Scoreboard, the size differential between R&D performers in the EU and US is more closely examined. A first observation is that, despite great differences between sectors, the overall distribution of companies' R&D investments in both economies is remarkably similar, as opposed to the distribution of the R&D/sales ratios of the same two sets of companies. The notion that size plays a role, independent of the sectoral composition of R&D, is then confirmed by regression analysis. In the US as well as in the EU, smaller sized Scoreboard companies tend to spend a larger proportion of their income from sales on R&D.
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Bibliographic InfoPaper provided by Friedrich-Schiller-University Jena, Max-Planck-Institute of Economics in its series Jena Economic Research Papers with number 2008-049.
Date of creation: 18 Jun 2008
Date of revision:
R&D intensity; firm size; panel data;
Other versions of this item:
- Raquel Ortega-Argilés & Andries Brandsma, 2010. "EU-US differences in the size of R&D intensive firms: do they explain the overall R&D intensity gap?," Science and Public Policy, Oxford University Press, vol. 37(6), pages 429-441, July.
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- O30 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2008-06-27 (All new papers)
- NEP-EEC-2008-06-27 (European Economics)
- NEP-INO-2008-06-27 (Innovation)
- NEP-KNM-2008-06-27 (Knowledge Management & Knowledge Economy)
- NEP-TID-2008-06-27 (Technology & Industrial Dynamics)
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