Abstract
The relative importance of a multitude of factors forthe allocation of expenses towards R & D are assessedin an empirical study of the Canadian biotechnologyindustry. The results show that patent protection andstrategic alliances facilitate R & D spending. Theresults also show that early-stage firms spend agreater proportion of the expenditures on R & D, whilefirms engaged in R & D in platform technologies andfirms with high debt-equity ratios spend a lowerproportion of their expenditures on R & D. Demand pulland competition variables are insignificant factors. Finally, counter to our expectations, R & Dexpenditures are more intensive among firms engaged inR & D in areas in which consumer controversies are morepronounced.
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Cumming, D.J., MacIntosh, J.G. The Determinants of R & D Expenditures: A Study of the Canadian Biotechnology Industry. Review of Industrial Organization 17, 357–370 (2000). https://doi.org/10.1023/A:1007864315687
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DOI: https://doi.org/10.1023/A:1007864315687