IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

How Much Does R&D Decision Depend on Firm, Industry, Group and its Interactions?

Listed author(s):
  • K.S. Sujit

    (Alemaya University , Dire dawa)

  • Badshah Mukherjee

    (ICFAI University, India)

Registered author(s):

    In the recent year, technological progress through research and development (R&D) has been widely recognized as a key factor contributing to economic growth and competitiveness of the economy. In the traditional industrial organization (IO) literature R&D activities was considered to be an important conduct variable that can affect performance of the industry. Industrial organization (IO) literature stresses that the R&D behaviour is linked to industry structure and has the ability to create barriers to entry. On the other hand subsequent studies have stressed on the strategic groups within an industry as the main driving force behind the R&D behaviour of firms. However, the resource based view stresses on the internal capability of the firm as the main driving force. They also emphasized that the behaviour of the firm is path dependent. This study is an attempt to measure the effects of industry, group, and firm on R&D behaviour of the firm and their interaction. The study uses both continuous and categorical variables in an ANCOVA setting. The sample consists of data about Indian companies across 29 industries during 1995-2003. The findings show that though the effects of the industry and the firm are important, the most significant contributor is the effect of the interaction between the groups and the industry.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    Download Restriction: no

    Paper provided by EconWPA in its series Industrial Organization with number 0503008.

    in new window

    Length: 15 pages
    Date of creation: 17 Mar 2005
    Handle: RePEc:wpa:wuwpio:0503008
    Note: Type of Document - pdf; pages: 15
    Contact details of provider: Web page:

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. R. E. Caves & M. E. Porter, 1977. "From Entry Barriers to Mobility Barriers: Conjectural Decisions and Contrived Deterrence to New Competition," The Quarterly Journal of Economics, Oxford University Press, vol. 91(2), pages 241-261.
    2. Kumar, Nagesh, 1990. "Mobility Barriers and Profitability of Multinational and Local Enterprises in Indian Manufacturing," Journal of Industrial Economics, Wiley Blackwell, vol. 38(4), pages 449-463, June.
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpio:0503008. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.