Business group affiliation and R&D propensity
In this paper we analyse whether belonging to a business group enhances firms’ R&D propensity and intensity as a result of the greater opportunities to co-ordinate R&D strategies and internalize the positive spillovers. We analyse the organization of R&D management within a business group and how the positioning of firms within the group influences their propensity for and intensity of R&D. We find a strong association between the degree of diversification of business groups and the way in which R&D is organized. Monosector groups are more likely to centralize R&D while diversified groups tend to give more autonomy to affiliated firms. We find also that R&D autonomy is significantly associated with both a higher R&D propensity and intensity in controlled firms. For the firm heading the group, we find that R&D autonomy (centralization) is associated with reduced (increased) R&D intensity, but that this association is less significant for R&D propensity.
|Date of creation:||Jul 2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.cmet05.it|
More information through EDIRC
References listed on IDEAS
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.:
- Klevorick, Alvin K. & Levin, Richard C. & Nelson, Richard R. & Winter, Sidney G., 1995.
"On the sources and significance of interindustry differences in technological opportunities,"
Elsevier, vol. 24(2), pages 185-205, March.
- Alvin K. Klevorick & Richard C. Levin & Richard R. Nelson & Sidney G. Winter, 1993. "On the Sources and Significance of Interindustry Differences in Technological Opportunities," Cowles Foundation Discussion Papers 1052, Cowles Foundation for Research in Economics, Yale University.
- repec:ner:ucllon:http://discovery.ucl.ac.uk/17678/ is not listed on IDEAS
- Sandro Brusco & Fausto Panunzi, 2002.
"Reallocation of Corporate Resources and Managerial Incentives in Internal Capital Markets,"
CESifo Working Paper Series
735, CESifo Group Munich.
- Brusco, Sandro & Panunzi, Fausto, 2005. "Reallocation of corporate resources and managerial incentives in internal capital markets," European Economic Review, Elsevier, vol. 49(3), pages 659-681, April.
- Brusco, Sandro & Panunzi, Fausto, 2000. "Reallocation of Corporate Resources and Managerial Incentives in Internal Capital Markets," CEPR Discussion Papers 2532, C.E.P.R. Discussion Papers.
- Pierre Blanchard & Jean Pierre Huiban & Patrick Sevestre, 2005.
"R&D and Productivity in Corporate Groups: An Empirical Investigation Using a Panel of French Firms,"
Annals of Economics and Statistics,
GENES, issue 79-80, pages 461-485.
- Pierre Blanchard & Jean-Pierre Huiban & Patrick Sevestre, 2010. "R&D and Productivity in Corporate Groups: An Empirical Investigation Using a Panel of French Firms," NBER Chapters, in: Contributions in Memory of Zvi Griliches, pages 461-485 National Bureau of Economic Research, Inc.
- Pierre Blanchard & Jean-Pierre Huiban & Patrick Sevestre, 2005. "R&D and productivity in corporate groups: an empirical investigation using a panel of French firms," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00279983, HAL.
- Heitor V. Almeida & Daniel Wolfenzon, 2006. "A Theory of Pyramidal Ownership and Family Business Groups," Journal of Finance, American Finance Association, vol. 61(6), pages 2637-2680, December.
- Aghion, Philippe & Tirole, Jean, 1997.
"Formal and Real Authority in Organizations,"
4554125, Harvard University Department of Economics.
- Aghion, Philippe & Tirole, Jean, 1994. "Formal and Real Authority in Organizations," IDEI Working Papers 37, Institut d'Économie Industrielle (IDEI), Toulouse.
- Philippe Aghion & Jean Tirole, 1994. "Formal and Real Authority in Organizations," Working papers 95-8, Massachusetts Institute of Technology (MIT), Department of Economics.
- Philippe Aghion & Jean Tirole, 1994. "Normal and Real Authority in Organizations," Working papers 94-13, Massachusetts Institute of Technology (MIT), Department of Economics.
- Anaïs Hamelin, 2010.
"Small business groups enhance performance and promote stability, not expropriation. Evidence from French SMEs,"
Working Papers of LaRGE Research Center
2010-04, Laboratoire de Recherche en Gestion et Economie (LaRGE), Université de Strasbourg.
- Hamelin, Anaïs, 2011. "Small business groups enhance performance and promote stability, not expropriation. Evidence from French SMEs," Journal of Banking & Finance, Elsevier, vol. 35(3), pages 613-626, March.
- Bernstein, Jeffrey I & Nadiri, M Ishaq, 1988.
"Interindustry R&D Spillovers, Rates of Return, and Production in High-Tech Industries,"
American Economic Review,
American Economic Association, vol. 78(2), pages 429-34, May.
- Jeffrey Bernstein & Ishaq Nadiri, 1988. "Interindustry R&D Spillovers, Rates of Return, and Production in High-Tech Industries," Carleton Industrial Organization Research Unit (CIORU) 88-01, Carleton University, Department of Economics.
- Jeffrey I. Bernstein & M. Ishaq Nadiri, 1988. "Interindustry R&D Spillovers, Rates Of Return, and Production In High-Tech Industries," NBER Working Papers 2554, National Bureau of Economic Research, Inc.
- Tarun Khanna & Yishay Yafeh, 2005. "Business Groups and Risk Sharing around the World," The Journal of Business, University of Chicago Press, vol. 78(1), pages 301-340, January.
- Raquel Ortega-Argilés & Marco Vivarelli & Peter Voigt, 2009. "R&D in SMEs: a paradox?," Small Business Economics, Springer, vol. 33(1), pages 3-11, June.
- Stephane Lhuillery & Etienne Pfister, 2011. "Do Firms Know the Scope of their R&D Network? An Empirical Investigation of the Determinants of Network Awareness on French Survey Data," Industry and Innovation, Taylor & Francis Journals, vol. 18(1), pages 105-130.
- Alonso-Borrego, César & Forcadell, Francisco Javier, 2010. "Related diversification and R&D intensity dynamics," Research Policy, Elsevier, vol. 39(4), pages 537-548, May.
- Stephane Lhuillery, 2011. "The impact of corporate governance practices on R&D efforts: a look at shareholders' rights, cross-listing, and control pyramid," Industrial and Corporate Change, Oxford University Press, vol. 20(5), pages 1475-1513, October.
- Ishtiaq P. Mahmood & Will Mitchell, 2004. "Two Faces: Effects of Business Groups on Innovation in Emerging Economies," Management Science, INFORMS, vol. 50(10), pages 1348-1365, October.
- Frenz, Marion & Ietto-Gillies, Grazia, 2009. "The impact on innovation performance of different sources of knowledge: Evidence from the UK Community Innovation Survey," Research Policy, Elsevier, vol. 38(7), pages 1125-1135, September.
- Pavitt, Keith, 1984. "Sectoral patterns of technical change: Towards a taxonomy and a theory," Research Policy, Elsevier, vol. 13(6), pages 343-373, December.
- Elena Cefis & Stephanie Rosenkranz & Utz Weitzel, 2009. "Effects of coordinated strategies on product and process R&D," Journal of Economics, Springer, vol. 96(3), pages 193-222, April.
- Bianco, Magda & Nicodano, Giovanna, 2006. "Pyramidal groups and debt," European Economic Review, Elsevier, vol. 50(4), pages 937-961, May.
- Vivarelli, Marco & Evangelista, Rinaldo & Pianta, Mario, 1996. "Innovation and employment in Italian manufacturing industry," Research Policy, Elsevier, vol. 25(7), pages 1013-1026, October.
- Giulio Cainelli & Donato Iacobucci, 2009. "Business groups and the boundaries of the firm," Working Papers 0905, c.MET-05 - Centro Interuniversitario di Economia Applicata alle Politiche per L'industria, lo Sviluppo locale e l'Internazionalizzazione.
When requesting a correction, please mention this item's handle: RePEc:cme:wpaper:1203. 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: (Donato Iacobucci)
If references are entirely missing, you can add them using this form.