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Knowledge-Based Information and the Effectiveness of R&D in Small Firms

Author

Listed:
  • Fletcher, Joshua

    (RTI International)

  • Howard, Eric

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

  • Link, Albert

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

  • O'Connor, Alan

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

Abstract

This paper explores the impact that external sources of information have on the effectiveness of R&D in small, entrepreneurial firms. The effectiveness of R&D is measured in terms of two probabilities; the probability that a firm that received and completed a Phase I SBIR-funded research project is invited to submit a proposal for a Phase II award, and given such an invitation, the probability that a firm receives the Phase II award. Information from competitors is an important, in a statistical sense, covariate with the probability of being asked to submit a Phase II proposal whereas information from suppliers and customers in an important covariate with the probability of receiving a Phase II award.

Suggested Citation

  • Fletcher, Joshua & Howard, Eric & Link, Albert & O'Connor, Alan, 2022. "Knowledge-Based Information and the Effectiveness of R&D in Small Firms," UNCG Economics Working Papers 22-2, University of North Carolina at Greensboro, Department of Economics.
    • Handle: RePEc:ris:uncgec:2022_002
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    References listed on IDEAS

    as
    1. Hall, Bronwyn H. & Mairesse, Jacques & Mohnen, Pierre, 2010. "Measuring the Returns to R&D," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 2, chapter 0, pages 1033-1082, Elsevier.
    2. Dennis Leyden & Albert Link, 2015. "Toward a theory of the entrepreneurial process," Small Business Economics, Springer, vol. 44(3), pages 475-484, March.
    3. Andrew Atkeson & Ariel T. Burstein & Manolis Chatzikonstantinou, 2019. "Transitional Dynamics in Aggregate Models of Innovative Investment," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 273-301, August.
    4. David Bruce Audretsch & Maksim Belitski & Rosa Caiazza, 2021. "Start-ups, Innovation and Knowledge Spillovers," The Journal of Technology Transfer, Springer, vol. 46(6), pages 1995-2016, December.
    5. Cristiano Antonelli & Claudio Fassio, 2014. "The heterogeneity of knowledge and the academic mode of knowledge governance: Italian evidence in the first part of the 20th century," Science and Public Policy, Oxford University Press, vol. 41(1), pages 15-28.
    6. James A. Cunningham & Albert N. Link, 2022. "The Returns to Publicly Funded R&D: A Study of U.S. Federally Funded Research and Development Centers," Annals of Science and Technology Policy, now publishers, vol. 6(3), pages 228-314, March.
    7. Lerner, Josh & Stern, Scott (ed.), 2012. "The Rate and Direction of Inventive Activity Revisited," National Bureau of Economic Research Books, University of Chicago Press, number 9780226473031.
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    11. Editors The, 2007. "From the Editors," Basic Income Studies, De Gruyter, vol. 2(1), pages 1-5, June.
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    More about this item

    Keywords

    Small Business Innovation Research (SBIR) program; small firms; entrepreneurial firms; R&D; knowledge sources; program evaluation;
    All these keywords.

    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • 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
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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