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R versus D: Estimating the differentiated effect of research and development on innovation results

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  • Barge-Gil, Andrés
  • López, Alberto

Abstract

R&D is considered to be the main source of innovation. We argue that R&D is too broad a measure, including activities differing in purposes, culture, people, management and other features. However, empirical studies have not analyzed them separately, mainly due to the lack of data. Using firm-level data, the aim of this paper is to estimate the differentiated effect of research and development on different innovation outputs. Results show that both research and development activities are important. However, we find that development activities are more important for product innovation, while the effect of research activities is higher on process innovation. Moreover, we analyze differences by technological intensity of the sector. When analyzing product and process innovations, we find evidence supporting the existence of higher payoffs to development and, especially to research in low-tech sectors when compared with high-tech ones.

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  • Barge-Gil, Andrés & López, Alberto, 2011. "R versus D: Estimating the differentiated effect of research and development on innovation results," MPRA Paper 29091, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:29091
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    Cited by:

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    2. Barge-Gil, Andrés & López, Alberto, 2013. "R&D and productivity: In search of complementarity between research and development activities," MPRA Paper 43808, University Library of Munich, Germany.
    3. John C. Eklund, 2022. "The knowledge‐incentive tradeoff: Understanding the relationship between research and development decentralization and innovation," Strategic Management Journal, Wiley Blackwell, vol. 43(12), pages 2478-2509, December.
    4. Barge-Gil, Andrés & López, Alberto, 2014. "R&D determinants: Accounting for the differences between research and development," Research Policy, Elsevier, vol. 43(9), pages 1634-1648.
    5. Beck, Mathias & Junge, Martin & Kaiser, Ulrich, 2017. "Public Funding and Corporate Innovation," IZA Discussion Papers 11196, Institute of Labor Economics (IZA).
    6. Xue Wang, 2018. "The Effect Of Inbound Open Innovation On Firm Performance In Japanese Manufacturing Firms: Comparative Study Between Research Centre And Business Unit," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 22(07), pages 1-35, October.
    7. Mavroudi, Eva & Kesidou, Effie & Pandza, Krsto, 2020. "Shifting back and forth: How does the temporal cycling between exploratory and exploitative R&D influence firm performance?," Journal of Business Research, Elsevier, vol. 110(C), pages 386-396.
    8. Barge-Gil, Andres & D'Este, Pablo & Herrera, Liliana, 2018. "Corporate scientists as the triggers of transitions towards firms' exploration research strategies," MPRA Paper 85415, University Library of Munich, Germany.
    9. Žítek, Vladimír & Klímová, Viktorie, 2016. "Research Activity in the Czech and Slovak Regions," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2016), Rovinj, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Rovinj, Croatia, 8-9 September 2016, pages 376-383, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.
    10. Shilpi Tyagi & D. K. Nauriyal & Rachita Gulati, 2018. "Firm level R&D intensity: evidence from Indian drugs and pharmaceutical industry," Review of Managerial Science, Springer, vol. 12(1), pages 167-202, January.
    11. Arkadiusz Swiadek & Piotr Dzikowski & Marek Tomaszewski & Jadwiga Goraczkowska, 2016. "Structural Determinants of Innovation in Industry: The Pavitt Model in the Polish Economy (Strukturalne uwarunkowania aktywnosci innowacyjnej w przemysle – model Pavitta w polskiej gospodarce)," Problemy Zarzadzania, University of Warsaw, Faculty of Management, vol. 14(62), pages 202-224.
    12. Philip Akrofi Atitianti & James Chukwubudom Chikelu, 2021. "Corruption and firm growth: evidence from Nigeria," SN Business & Economics, Springer, vol. 1(5), pages 1-18, May.
    13. Michel Dumont & André Spithoven & Peter Teirlinck, 2016. "Public Support for R&D and the Educational Mix of R&D Employees," CESifo Economic Studies, CESifo, vol. 62(3), pages 426-452.
    14. Germán Daniel Lambardi & Jhon James Mora, 2014. "Determinantes de la innovación en productos o procesos: el caso colombiano," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 16(31), pages 251-262, July-Dece.
    15. André Spithoven, Belgian Science Policy Office and Ghent University & Michel Dumont & Peter Teirlinck, Belgian Science Policy Office and KU Leuven, 2014. "Working Paper 08-14 - Public support for R&D and the educational mix of R&D employees," Working Papers 1408, Federal Planning Bureau, Belgium.
    16. Becker, Annette & Hottenrott, Hanna & Mukherjee, Anwesha, 2022. "Division of labor in R&D? Firm size and specialization in corporate research," Journal of Economic Behavior & Organization, Elsevier, vol. 194(C), pages 1-23.
    17. Jaime Gómez & Idana Salazar & Pilar Vargas, 2017. "Does Information Technology Improve Open Innovation Performance? An Examination of Manufacturers in Spain," Information Systems Research, INFORMS, vol. 28(3), pages 661-675, September.

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    More about this item

    Keywords

    R&D; patents; product innovation; process innovation; impact;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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