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Effects Of Firm-Specific Factors On R&D Expenditures Of Agribusiness Companies

Author

Listed:
  • Maud ROUCAN-KANE

    ()

  • David UBILAVA

    ()

  • Pei XU

    () (Department of Agricultural Economics, College of Agriculture, Purdue University)

Abstract

The objective of this paper is to determine how the firm's infrastructure, the financial characteristics of a company (net income, sales), and the organizational structure (number of acquisitions, age of establishment of the firm) affect R&D investments in the agricultural sector. We use data for companies under the SIC codes for agricultural chemicals, and crop planning and protection. The results based on analysis of 69 observations of 12 firms revealed that firm's financial and organizational infrastructure does affect its R&D expenditures. Older and larger firms tend to spend more on R&D. During the last 17 years the R&D expenditures with respect to the sales of the company have been reduced. Finally, contrary to the expectations, previous year's profit margins are negatively correlated with the R&D over the sales ratio of the following year.

Suggested Citation

  • Maud ROUCAN-KANE & David UBILAVA & Pei XU, 2007. "Effects Of Firm-Specific Factors On R&D Expenditures Of Agribusiness Companies," Working Papers 07-04, Purdue University, College of Agriculture, Department of Agricultural Economics.
  • Handle: RePEc:pae:wpaper:07-04
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    More about this item

    Keywords

    Manufactured Housing; R&D; agriculture; chemicals; crop planning; crop protection; agribusiness; expenditures;

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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