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R versus D: Estimating the differentiated effect of research and development on innovation results

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  • Barge-Gil, Andrés
  • López, Alberto

Abstract

R&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 Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 29091.

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Date of creation: 23 Feb 2011
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Handle: RePEc:pra:mprapa:29091

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Keywords: R&D; patents; product innovation; process innovation; impact;

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References

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Cited by:
  1. Barge-Gil, Andrés & López, Alberto, 2012. "R&D Determinants: accounting for the differences between research and development," MPRA Paper 41270, University Library of Munich, Germany.
  2. Barge-Gil, Andrés & López, Alberto, 2013. "R&D and productivity: In search of complementarity between research and development activities," MPRA Paper 43808, University Library of Munich, Germany.

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