How Much Does R&D Decision Depend on Firm, Industry, Group and its Interactions?
AbstractIn the recent year, technological progress through research and development (R&D) has been widely recognized as a key factor contributing to economic growth and competitiveness of the economy. In the traditional industrial organization (IO) literature R&D activities was considered to be an important conduct variable that can affect performance of the industry. Industrial organization (IO) literature stresses that the R&D behaviour is linked to industry structure and has the ability to create barriers to entry. On the other hand subsequent studies have stressed on the strategic groups within an industry as the main driving force behind the R&D behaviour of firms. However, the resource based view stresses on the internal capability of the firm as the main driving force. They also emphasized that the behaviour of the firm is path dependent. This study is an attempt to measure the effects of industry, group, and firm on R&D behaviour of the firm and their interaction. The study uses both continuous and categorical variables in an ANCOVA setting. The sample consists of data about Indian companies across 29 industries during 1995-2003. The findings show that though the effects of the industry and the firm are important, the most significant contributor is the effect of the interaction between the groups and the industry.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Industrial Organization with number 0503008.
Length: 15 pages
Date of creation: 17 Mar 2005
Date of revision:
Note: Type of Document - pdf; pages: 15
Contact details of provider:
Web page: http://22.214.171.124
R&D decisions ; business groups;
Find related papers by JEL classification:
- L - Industrial Organization
This paper has been announced in the following NEP Reports:
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.:
- Caves, R E & Porter, M E, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, MIT Press, vol. 91(2), pages 241-61, May.
- Kumar, Nagesh, 1990. "Mobility Barriers and Profitability of Multinational and Local Enterprises in Indian Manufacturing," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 449-63, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.