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The Decision Between Internal and External R&D


  • Audretsch, D-B
  • Menkveld, A-J
  • Thurik, A-R


The purpose of this paper is to identify those factors shaping the decision to engage in external R&D. We use the lens of institutional economics to link the decision to engage in external R&D to both firm - and industry - specific characteristics. In particular, we find that internal and external R&D tend to be complements in high-technology industries but substitutes in low-technology industries.

Suggested Citation

  • Audretsch, D-B & Menkveld, A-J & Thurik, A-R, 1996. "The Decision Between Internal and External R&D," Papers 9603/e, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
  • Handle: RePEc:fth:miklrr:9603/e

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    References listed on IDEAS

    1. David Flath & Tatsuhiko Nariu, 2008. "The Complexity of Wholesale Distribution Channels in Japan," Japanese Economy, Taylor & Francis Journals, vol. 35(2), pages 68-86.
    2. Potjes, J.C.A. & Thurik, A.R., 1992. "Retail Profit Margins in Japan," Papers 9202, NEUHUYS - RESEARCH INSTITUTE FOR SMALL AND MEDIUM.
    3. Flath, David, 1989. "Vertical restraints in Japan," Japan and the World Economy, Elsevier, vol. 1(2), pages 187-203, March.
    4. Nishimura, Kiyohiko G., 1993. "The distribution system of Japan and the United States: a comparative study from the viewpoint of final-goods buyers," Japan and the World Economy, Elsevier, vol. 5(3), pages 265-288, September.
    5. Takatoshi Ito & Masayoshi Maruyama, 1991. "Is the Japanese Distribution System Really Inefficient?," NBER Chapters,in: Trade with Japan: Has the Door Opened Wider?, pages 149-174 National Bureau of Economic Research, Inc.
    6. Douglas, Susan P. & Craig, C. Samuel, 1990. "Achieving success in Japanese consumer markets," Japan and the World Economy, Elsevier, vol. 2(1), pages 1-21, March.
    7. Kuribayashi, Sei, 1991. "Present situation and future prospect of Japan's distribution system," Japan and the World Economy, Elsevier, vol. 3(1), pages 39-60, April.
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    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty


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