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

Author

Listed:
  • Joshua Fletcher

    (RTI International)

  • Eric Howard

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

  • Albert Link

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

  • Alan O'Connor

    (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

  • Joshua Fletcher & Eric Howard & Albert Link & Alan O'Connor, 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
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    More about this item

    Keywords

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    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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