Advertisement

De Economist

, Volume 141, Issue 2, pp 279–289 | Cite as

Determinants of internal and external R&D: Some Dutch evidence

  • Rene G. J. Den Hertog
Article

Summary

Innovating firms can choose to engage in either internal or external R&D, or in both. In the current study, we shall examine internal and external R&D separately to determine empirically the market structure characteristics explaining the external R&D share and the differences in market structure determinants between internal and external R&D. Our results indicate that a government policy that aims at stimulating technological progress by offering external research facilities is particularly interesting for smaller, capital-intensive firms operating in less concentrated markets.

Keywords

Structure Characteristic International Economic Public Finance Government Policy Market Structure 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Acs, Z.J. and D.B. Audretsch (1987), ‘Innovation, Market Structure, and Firm Size,’Review of Economics and Statistics, 69, pp. 567–575.Google Scholar
  2. Acs, Z.J. and D.B. Audretsch (1988), ‘Innovation in Large and Small Firms: An Empirical Analysis,’American Economic Review, 78, pp. 678–690.Google Scholar
  3. Asch, P. and J.J. Seneca (1975), ‘Characteristics of Collusive Firms,’Journal of Industrial Economics, 23, pp. 223–237.Google Scholar
  4. Baldwin, W.L. and J.T. Scott (1987),Market Structure and Technological Change, London and New York.Google Scholar
  5. Berg, F.J.M. van den (1989), ‘Patenting Activity and Elements of Market Structure in the Dutch Manufacturing Industry,’De Economist, 137, pp. 476–492.Google Scholar
  6. Branch, B. (1974), ‘Research and Development Activity and Profitability: A Distributed Lag Analysis,’Journal of Political Economy, 82, pp. 999–1011.Google Scholar
  7. Coate, M.B. and N.D. Uri (1988), ‘A Simultaneous Equations Approach to Modeling Industry Structure and Economic Performance,’Metroeconomica, 39, pp. 181–204.Google Scholar
  8. Cohen, W.M. and R.C. Levin (1989), ‘Empirical Studies of Innovation and Market Structure,’ in: R. Schmalensee and R.D. Willig (eds.),Handbook of Industrial Organization, II, Amsterdam.Google Scholar
  9. Comanor, W.S. (1967), ‘Market Structure, Product Differentiation, and Industrial Research,’Quarterly Journal of Economics, 81, pp. 639–657.Google Scholar
  10. Dosi, G. (1988), ‘Sources, Procedures and Micro-economic Effects of Innovation,’Journal of Economic Literature, 26, pp. 1120–1171.Google Scholar
  11. Farrell, J. and G. Saloner (1985), ‘Standardization, Compatibility, and Innovation,’Rand Journal of Economics, 16, pp. 70–83.Google Scholar
  12. Galbraith, J.K. (1952),American Capitalism, The Concept of Countervailing Power, Boston.Google Scholar
  13. Grabowski, H. (1968), ‘The Determinants of Industrial Research and Development: A Study of the Chemical, Drug and Petroleum Industries,’Journal of Political Economy, 76, pp. 292–306.Google Scholar
  14. Hall, M. and L. Weiss (1967), ‘Firm Size and Profitability,’Review of Economics and Statistics, 49, pp. 319–331.Google Scholar
  15. Kamien, M.I. and N.L. Schwartz (1978), ‘Self-financing of an R&D Project,’American Economic Review, 68, pp. 252–261.Google Scholar
  16. Kamien, M.I. and N.L. Schwartz (1982),Market Structure and Innovation, Cambridge.Google Scholar
  17. Kleinknecht, A. and J.O.N. Reijnen (1991), ‘Why do Firms Cooperate on R&D? An Empirical Study,’ forthcoming, in:Research Policy.Google Scholar
  18. Kraft, K. (1989), ‘Market Structure, Firm Characteristics and Innovative Activity,’Journal of Industrial Economics, 37, pp. 327–336.Google Scholar
  19. Link, A.N. (1982), ‘An Analysis of the Composition of R&D Spending,’Southern Economic Journal, 49, pp. 342–349.Google Scholar
  20. Link, A.N. and J. Rees (1991), ‘Firm Size, University-based Research and Returns to R&D,’ in: Z.J. Acs and D.B. Audretsch (eds.),Innovation and Technological Change: An International Comparison, pp. 60–70.Google Scholar
  21. Mansfield, E., J. Rapoport, A. Romeo, E. Villani, S. Wagner and F. Husic (1977),The Production and Application of New Industrial Technologies, New York.Google Scholar
  22. Mowery, D.C. (1983), ‘The Relationship Between Intrafirm and Contractual Forms of Industrial Research in American Manufacturing, 1900–1940,’Explorations in Economic History, 20, pp. 351–374.Google Scholar
  23. Palmer, J. (1972), ‘Some Economic Conditions Conducive to Collusion,’Journal of Economic Issues, 6, pp. 29–38.Google Scholar
  24. Peck, M.J. (1986), ‘Joint R&D: The Case of Microelectronics and Computer Technology Corporation,’Research Policy, 15, pp. 219–231.Google Scholar
  25. Scherer, F.M. (1980),Industrial Market Structure and Economic Performance, Chicago.Google Scholar
  26. Schumpeter, J.A. (1950),Capitalism, Socialism and Democracy, 3rd ed., New York.Google Scholar
  27. Varcoe, I. (1974),Organizing for Science in Britain: A Case-Study, Oxford.Google Scholar
  28. White, H. (1980), ‘A Heteroscedastic-consistent Covariance Matrix Estimator and a Direct Test for Heteroscedasticity,’Econometrica, 48, pp. 421–448.Google Scholar

Copyright information

© Stenfert Kroese 1993

Authors and Affiliations

  • Rene G. J. Den Hertog
    • 1
    • 2
  1. 1.Tinbergen InstituteErasmus UniversityRotterdam
  2. 2.Centre for Advanced Small Business Economics (CASBEC)Erasmus UniversityRotterdam

Personalised recommendations