Abstract
We provide a novel approach to the existing literature on the effects of restructuring on R&D investment by focusing on a single industry, chemicals. The chemical industry is very research intensive and has experienced thorough restructuring since the early 1980s. By focusing on a single industry we are able to identify the technological and R&D features of its segments. This is important, since there is evidence that restructuring affects R&D differently in businesses with different technological features. However, no study so far has provided a systematic inquiry into this link. Using a panel of 535 European, American, and Japanese firms for the years 1987–1997 we find restructuring to be an important component in the observed changes in R&D intensity. We show that restructuring affects R&D both through changes in size and through changes in the composition of business portfolios, and that these effects differ across industry segments.
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Arora, A., Ceccagnoli, M., Da Rin, M. (2004). Corporate Restructuring and R&D: A Panel Data Analysis for the Chemical Industry. In: Cesaroni, F., Gambardella, A., Garcia-Fontes, W. (eds) R&D, Innovation and Competitiveness in the European Chemical Industry. Springer, Boston, MA. https://doi.org/10.1007/978-1-4020-7942-9_4
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DOI: https://doi.org/10.1007/978-1-4020-7942-9_4
Publisher Name: Springer, Boston, MA
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