R versus D: Estimating the differentiated effect of research and development on innovation results
AbstractR&D is considered to be the main source of innovation. We argue that R&D is too broad a measure, including activities differing in purposes, culture, people, management and other features. However, empirical studies have not analyzed them separately, mainly due to the lack of data. Using firm-level data, the aim of this paper is to estimate the differentiated effect of research and development on different innovation outputs. Results show that both research and development activities are important. However, we find that development activities are more important for product innovation, while the effect of research activities is higher on process innovation. Moreover, we analyze differences by technological intensity of the sector. When analyzing product and process innovations, we find evidence supporting the existence of higher payoffs to development and, especially to research in low-tech sectors when compared with high-tech ones.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 29091.
Date of creation: 23 Feb 2011
Date of revision:
R&D; patents; product innovation; process innovation; impact;
Find related papers by JEL classification:
- O3 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights
- L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
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