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Do Firms Benefit from Complementarity Effect in R&D and What Drives their R&D Strategy Choices?

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  • Uwe Cantner

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Ivan Savin

    () (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

This paper analyzes whether firms conducting internal R&D and acquiring external high-tech equipment experience a complementarity effect. For German CIS data we conduct a complete set of indirect and direct complementarity tests refining the analysis by looking at various types of innovations and industries. Complementary effects are found in the indirect but not so in the direct approach. In contrast to previous literature, we find the distinct R&D strategy choices to be significant drivers of innovative activity and we identify contextual variables explaining the joint occurrence of the two strategies.

Suggested Citation

  • Uwe Cantner & Ivan Savin, 2014. "Do Firms Benefit from Complementarity Effect in R&D and What Drives their R&D Strategy Choices?," Jena Economic Research Papers 2014-023, Friedrich-Schiller-University Jena.
  • Handle: RePEc:jrp:jrpwrp:2014-023
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    References listed on IDEAS

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    Cited by:

    1. Uwe Cantner, 2016. "Foundations of economic change—an extended Schumpeterian approach," Journal of Evolutionary Economics, Springer, vol. 26(4), pages 701-736, October.

    More about this item

    Keywords

    complementarity; equipment with embodied technology; innovation; internal R&D; Pavitt's sectoral taxonomy;

    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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