A reprise of size and R&D

Article Abstract:

A number of previous economic studies have indicated that large firms have a substantial advantage over small firms in research and development (R&D) capacities. This is in contrast to concerns voiced out by policymakers in Europe and the US that the inability of small firms to compete technologically with large firms could result in economic dislocation and a decline in competition among industries. The theory that large firms have an advantage in R&D and the relationship between firm size and R&D was examined in an R&D cost spreading model. The model suggests that there is a positive correlation between increasing returns to firm size and R&D.

Author: Klepper, Steven, Cohen, Wesley M.
Technological innovations, Corporate size

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The anatomy of industry R&D intensity distributions

Article Abstract:

R&D intensity, or the ratio of R&D to sales, measures innovation within firms. The R&D intensity of 2,491 business units within 352 companies in 254 manufacturing operations was studied. The results indicated that the distributions in R&D intensity tended to be unimodal, were positively skewed to the right and had a considerable number of non-performers. A common probabilistic process appeared to differentiate an unobserved factor that affected the R&D intensities of firms within industries.

Author: Klepper, Steven, Cohen, Wesley M.
Models, Industrial organization

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Entry, exit, growth, and innovation over the product life cycle

Article Abstract:

The traditional product life cycle is defined primarily by a dominant design, which serves as the product standard and induces firms to compete for the best product variant. Alternative product versions are attempted as firms invest more in the production process. Firms are expected to improve process innovation programs, although innovation rate and diversity will eventually decline.

Author: Klepper, Steven
Research, Competition (Economics), Product development, Product life cycle

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Subjects list: Economic aspects, Industrial research
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