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Persistent heterogeneity of R&D intensities within sectors: Evidence and policy implications

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  • Alex Coad

    () (CENTRUM-Catolica Graduate Business School, Pontificia Universidad Catolica del Peru, Lima, Peru.)

Abstract

Do firms in the same sector converge towards the same R&D intensities? Previous research has often assumed this to be true. A closer examination, using microdata from the EU Industrial R&D Investment Scoreboard for the years 2000-2015, shows a large amount of heterogeneity in R&D intensities among firms in the same sector, and that this heterogeneity persists over time. Statistical tests of convergence show that the variation in R&D intensities does not decrease over time (i.e. no ?-convergence), although firms with an R&D intensity below the industry average do seem to catch up with the leaders (i.e. evidence of ?-convergence). Overall, firms in the same industry do not converge to a common R&D intensity. Policy implications are discussed.

Suggested Citation

  • Alex Coad, 2017. "Persistent heterogeneity of R&D intensities within sectors: Evidence and policy implications," JRC Working Papers on Corporate R&D and Innovation 2017-04, Joint Research Centre (Seville site).
    • Handle: RePEc:ipt:wpaper:201704
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    Cited by:

    1. Ciriaci, Daria & Grassano, Nicola & Vezzani, Antonio, 2019. "Regulations and location choices of top R&D investors worldwide," Structural Change and Economic Dynamics, Elsevier, vol. 49(C), pages 29-42.
    2. Mihaela DIACONU, 2019. "Business R&D investments in the EU: Main dynamics and economic effects," Theoretical and Applied Economics, Asociatia Generala a Economistilor din Romania - AGER, vol. 0(4(621), W), pages 19-34, Winter.
    3. Pietro Moncada-Paterno-Castello & Nicola Grassano, 2020. "The EU vs US corporate R&D intensity gap: Investigating key sectors and firms," JRC Working Papers on Corporate R&D and Innovation 2020-02, Joint Research Centre (Seville site).
    4. Petros Gkotsis & Antonio Vezzani, 2019. "Heterogeneity of technology-specific R&D investments. Evidence from top R&D investors worldwide," JRC Working Papers on Corporate R&D and Innovation 2018-04, Joint Research Centre (Seville site).
    5. Coad, Alex & Vezzani, Antonio, 2019. "Three cheers for industry: Is manufacturing linked to R&D, exports, and productivity growth?," Structural Change and Economic Dynamics, Elsevier, vol. 50(C), pages 14-25.
    6. repec:agr:journl:v:4(621):y:2019:i:4(621):p:19-34 is not listed on IDEAS

    More about this item

    Keywords

    R&D investment; R&D intensity; convergence; benchmarking;

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior

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