Effects Of Firm-Specific Factors On R&D Expenditures Of Agribusiness Companies
AbstractThe objective of this paper is to determine how the firm's infrastructure, the financial characteristics of a company (net income, sales), and the organizational structure (number of acquisitions, age of establishment of the firm) affect R&D investments in the agricultural sector. We use data for companies under the SIC codes for agricultural chemicals, and crop planning and protection. The results based on analysis of 69 observations of 12 firms revealed that firm's financial and organizational infrastructure does affect its R&D expenditures. Older and larger firms tend to spend more on R&D. During the last 17 years the R&D expenditures with respect to the sales of the company have been reduced. Finally, contrary to the expectations, previous year's profit margins are negatively correlated with the R&D over the sales ratio of the following year.
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Bibliographic InfoPaper provided by Purdue University, College of Agriculture, Department of Agricultural Economics in its series Working Papers with number 07-04.
Length: 16 pages
Date of creation: 2007
Date of revision:
Manufactured Housing; R&D; agriculture; chemicals; crop planning; crop protection; agribusiness; expenditures;
Find related papers by JEL classification:
- A10 - General Economics and Teaching - - General Economics - - - General
- O32 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Management of Technological Innovation and R&D
- Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services
This paper has been announced in the following NEP Reports:
- NEP-AGR-2008-01-26 (Agricultural Economics)
- NEP-ALL-2008-01-26 (All new papers)
- NEP-IPR-2008-01-26 (Intellectual Property Rights)
- NEP-MIC-2008-01-26 (Microeconomics)
- NEP-TID-2008-01-26 (Technology & Industrial Dynamics)
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