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Intramural and external R&D: evidence for complementarity or substitutability

Author

Listed:
  • Dolores Añón Higón

    (Universitat de València)

  • Juan A. Máñez

    () (Universitat de València)

  • Juan A. Sanchis-Llopis

    (Universitat de València)

Abstract

Abstract The aim of this study is to ascertain the impact of two firm innovation strategies—namely, intramural R&D and external R&D, including either contracted R&D and import of technology, upon total factor productivity (TFP). In order to evaluate these effects we consider robust estimates of TFP through a GMM approach where we account for the diverse innovation strategies carried out by firms (intramural only, external only or both). Using data for Spanish manufacturing firms drawn from the Encuesta de Estrategias Empresariales (ESEE), over the period 1991–2014, our results suggest that inhouse R&D and external R&D are complementary strategies only for large firms in high tech sectors. For the rest of firms, both strategies turn out to be substitutive. Further, R&D strategies only offer a TFP premium to exporters. We find no positive synergies between in-house and external R&D for large exporters, while for small exporters both strategies are substitutes.

Suggested Citation

  • Dolores Añón Higón & Juan A. Máñez & Juan A. Sanchis-Llopis, 2018. "Intramural and external R&D: evidence for complementarity or substitutability," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 555-577, August.
  • Handle: RePEc:spr:epolit:v:35:y:2018:i:2:d:10.1007_s40888-018-0100-z
    DOI: 10.1007/s40888-018-0100-z
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    References listed on IDEAS

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    Cited by:

    1. María García-Vega & Elena Huergo, 2019. "Asymmetric additionalities between R&D outsourcing locations," Discussion Papers 2019-08, University of Nottingham, GEP.

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