Relation of Firm Size to R&D Productivity
Many studies have shown that small firms generate more patents per R&D dollar than large firms. Does this mean that small firms are more efficient innovators than large firms? In this paper we exploit a unique data set to reexamine the firm size-innovation relationship. Because firm-reported R&D expenditures may be a biased measure of R&D activities due to under-reporting by small firms, we use the number of inventors in the firm¡¦s employ as a measure of R&D inputs. We focus on the pharmaceutical and semiconductor industries, two industries that are prolific generators of homogenous innovations. As has been found elsewhere in the literature, we find that patents per R&D dollar decline with firm size for both industries. This contrasts with the relationship between patents per inventor and firm size. The average number of patents per inventor increases with size in the semiconductor industry. In the pharmaceutical industry, we find no relationship between the number of patents produced per inventor and firm size.
Volume (Year): 8 (2009)
Issue (Month): 1 (April)
|Contact details of provider:|| Postal: |
Web page: http://www.ijbe.org/
More information through EDIRC
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.:
- Zoltan Acs & David Audretsch, 1990. "Innovation and Small Firms," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011131, June.
- Xulia González & Jordi Jaumandreu, . "Threshold effects in product R&D decisions: theoretical framework and empirical analysis," Studies on the Spanish Economy 78, FEDEA.
- Sangjoon Lee & Jinyoung Kim, 2004.
"Research Scientist Productivity and Firm Size: Evidence from Panel Data on Inventors,"
Econometric Society 2004 Far Eastern Meetings
465, Econometric Society.
- Jinyoung Kim & Sangjoon John Lee & Gerald Marschke, 2007. "Research Scientist Productivity and Firm Size: Evidence from Panel Data on Inventors," Discussion Paper Series 0708, Institute of Economic Research, Korea University.
- Gerald Marschke & Jinyoung Kim & Sangjoon John Lee, 2004. "Research Scientist Productivity and Firm Size: Evidence from Panel Data on Investors," Discussion Papers 04-06, University at Albany, SUNY, Department of Economics.
- Wesley M Cohen & Richard R Nelson & John P Walsh, 2003.
"Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (Or Not),"
Levine's Working Paper Archive
618897000000000624, David K. Levine.
- Wesley M. Cohen & Richard R. Nelson & John P. Walsh, 2000. "Protecting Their Intellectual Assets: Appropriability Conditions and Why U.S. Manufacturing Firms Patent (or Not)," NBER Working Papers 7552, National Bureau of Economic Research, Inc.
- Hall, B. & Jaffe, A. & Trajtenberg, M., 2001.
"The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools,"
2001-29, Tel Aviv.
- Bronwyn H. Hall & Adam B. Jaffe & Manuel Trajtenberg, 2001. "The NBER Patent Citation Data File: Lessons, Insights and Methodological Tools," NBER Working Papers 8498, National Bureau of Economic Research, Inc.
- Hall, Bronwyn H & Jaffe, Adam B & Trajtenberg, Manuel, 2001. "The NBER Patent Citations Data File: Lessons, Insights and Methodological Tools," CEPR Discussion Papers 3094, C.E.P.R. Discussion Papers.
- Cameron, A Colin & Trivedi, Pravin K, 1986. "Econometric Models Based on Count Data: Comparisons and Applications of Some Estimators and Tests," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 1(1), pages 29-53, January.
- Cohen, Wesley M & Klepper, Steven, 1996. "A Reprise of Size and R&D," Economic Journal, Royal Economic Society, vol. 106(437), pages 925-51, July.
- Tsai, Kuen-Hung & Wang, Jiann-Chyuan, 2005. "Does R&D performance decline with firm size?--A re-examination in terms of elasticity," Research Policy, Elsevier, vol. 34(6), pages 966-976, August.
When requesting a correction, please mention this item's handle: RePEc:ijb:journl:v:8:y:2009:i:1:p:7-19. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Yi-Ju Su)
If references are entirely missing, you can add them using this form.