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The determinants of R&D persistence in SMEs

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  • Juan Máñez
  • María Rochina-Barrachina
  • Amparo Sanchis-Llopis
  • Juan Sanchis-Llopis

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Abstract

This paper analyses the sources of persistence in conducting R&D activities by SMEs. The data used are a panel of Spanish manufacturing firms drawn from the Survey of Business Strategies, for the period 1990–2011. We estimate discrete time proportional hazard models accounting for firm observed and unobserved heterogeneity. Our results are consistent with a process of learning associated with the accumulation of R&D capital and with a self-sustained effect of engagement in R&D activities. In addition, we obtain that persistence in R&D in SMEs is also related to the success-breeds-success, sunk costs and demand-pull hypotheses. Finally, our findings also uncover some interesting differences in the underlying drivers of R&D persistence of SMEs as compared to their larger counterparts. Copyright Springer Science+Business Media New York 2015

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  • Juan Máñez & María Rochina-Barrachina & Amparo Sanchis-Llopis & Juan Sanchis-Llopis, 2015. "The determinants of R&D persistence in SMEs," Small Business Economics, Springer, vol. 44(3), pages 505-528, March.
    • Handle: RePEc:kap:sbusec:v:44:y:2015:i:3:p:505-528
    DOI: 10.1007/s11187-014-9611-3
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    Cited by:

    1. Cristiano Antonelli & Francesco Crespi & Giuseppe Scellato, 2015. "Productivity growth persistence: firm strategies, size and system properties," Small Business Economics, Springer, vol. 45(1), pages 129-147, June.
    2. Rammer, Christian & Schubert, Torben, 2016. "Concentration on the few? R&D and innovation in German firms 2001 to 2013," ZEW Discussion Papers 16-005, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    3. Carlo Corradini & Pelin Demirel & Giuliana Battisti, 2016. "Technological diversification within UK’s small serial innovators," Small Business Economics, Springer, vol. 47(1), pages 163-177, June.
    4. repec:eee:respol:v:47:y:2018:i:2:p:379-389 is not listed on IDEAS
    5. Fontana, Roberto & Vezzulli, Andrea, 2016. "Technological leadership and persistence in product innovation in the Local Area Network industry 1990–1999," Research Policy, Elsevier, vol. 45(8), pages 1604-1619.

    More about this item

    Keywords

    SMEs; R&D activities; Persistence; Learning; Success-breeds-success; Sunk costs; Demand-pull; Discrete time survival models; C41; L60; O31; L26;

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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