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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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    Cited by:

    1. Albert N. Link & Martijn Hasselt, 2020. "Exploring the impact of R&D on patenting activity in small women-owned and minority-owned entrepreneurial firms," Small Business Economics, Springer, vol. 54(4), pages 1061-1066, April.
    2. Cai, Helen (Huifen) & Sarpong, David & Tang, Xiaoyun & Zhao, Guiqin, 2020. "Foreign patents surge and technology spillovers in China (1985–2009): Evidence from the patent and trade markets," Technological Forecasting and Social Change, Elsevier, vol. 151(C).
    3. Goel, Rajeev K. & Nelson, Michael A., 2020. "Do external quality certifications improve firms’ conduct? International evidence from manufacturing and service industries," The Quarterly Review of Economics and Finance, Elsevier, vol. 76(C), pages 97-104.

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    More about this item

    Keywords

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

    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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