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Doing R&D in a closed or open mode : dynamics and impacts on productivity

  • Rosa J.
  • Mohnen P.


On the one hand, firms prefer to perform RD in an open mode letting RD be performed extramurally or even selling their RD services to benefit from knowledge spillovers and complementarities between internal and external RD. On the other hand, they may also like to perform RD in a closed mode funding and executing their RD intramurally to minimize outgoing externalities. We examine the dynamic process by which firms change the way of doing RD and how these strategic choices of doing RD affect their productivity growth. This study is based on the Statistics Canada Research and Development in Canadian Industry survey RDCI, which collects data on RD performed in the business sector in Canada. The paper is based on data for the period 1997 to 2006. The panel dimension of the data allows to control for unobserved characteristics ofRD performers by estimating a multinomial Logit model with unobserved heterogeneities using maximum simulated likelihood MSL method.

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Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 060.

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Date of creation: 2013
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Handle: RePEc:unm:unumer:2013060
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