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Propensity to Patent and Firm Size for Small R&D-Intensive Firms

Author

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  • Link, Albert

    () (University of North Carolina at Greensboro, Department of Economics)

  • Scott, John

    () (Dartmouth College, Department of Economics)

Abstract

The Schumpeterian hypothesis about the effect of firm size on research and development (R&D) output is studied for a sample of R&D projects for R&D-intensive firms that are small but have substantial variance in their sizes. Across the distribution of firm sizes, the elasticity of patenting with respect to R&D ranged from 0.41 to 0.55, with the elasticities being largest for intermediate levels of firm size and also varying directly with the extent to which the projects are Schumpeterian in the cost or value senses. The paper’s findings at the R&D project level are compared with the literature’s findings at the line of business, firm, and industry levels, and the findings are consistent with the literature’s findings for small firms.

Suggested Citation

  • Link, Albert & Scott, John, 2018. "Propensity to Patent and Firm Size for Small R&D-Intensive Firms," UNCG Economics Working Papers 18-1, University of North Carolina at Greensboro, Department of Economics.
  • Handle: RePEc:ris:uncgec:2018_001
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    References listed on IDEAS

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    More about this item

    Keywords

    Patents; Research and Development (R&D); Firm Size; Schumpeterian hypothesis; Technological Progress; Innovation;

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General

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