Small Business Economics

, Volume 1, Issue 4, pp 297–301 | Cite as

R&D and market structure: The impact of measurement and aggregation problems

  • Alfred Kleinknecht
  • Bart Verspagen


Estimates on the relationship between concentration and R&D effort are shown to be sensitive to problems of aggregation and of adequate measurement of R&D in small firms. While estimates from the official R&D survey of the Netherlands show a highly significant linear relationship between concentration and R&D, comparable estimates from our R&D data base prove it to be insignificant. However, at a finer level of disaggregation and when our sample is split into sectors with low and high technological opportunities, we discover evidence of a quadratic relationship in the latter and evidence of a weak linear relationship in the former.


Linear Relationship Data Base Small Firm Industrial Organization Market Structure 
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Copyright information

© Kluwer Academic Publishers 1989

Authors and Affiliations

  • Alfred Kleinknecht
    • 1
    • 2
  • Bart Verspagen
    • 1
    • 2
  1. 1.SEOFoundation for Economic Research of the University of AmsterdamAmsterdamThe Netherlands
  2. 2.Maastricht Economic Research Institute on Innovation and Technology (MERIT)MaastrichtThe Netherlands

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